I don't think that the houses are anything important, it's just where someone lives. "Romeo" is a reference to "Romeo and Juliet" I believe.
The imps are actually pretty easy. Put a skill point into "Divine Death". Since the imps have negative spiritual resistance, that should one-shot them.
If you have the skill points, I recommend maxing both Curse (the survivor spell) and Divine Death, and using Curse to knock the spiritual resistance of mini-bosses down to < 50, then one-shotting them with Divine Death. It's much faster than killing them any other way.