Night Terrors

Walkthrough
Just a quick, IMPORTANT note until someone creates a complete walkthrough:

WARNING: SPOILER!

For this quest, you and your party must enter the fade. If you choose to take Merrill with you, she will succumb to the demon of Pride no matter what options you choose. You will be forced to fight her. However, when she dies in the Fade, she does not die in real life. You can complete the quest, and when you exit the Fade, she will be alive and well and still in your party.

Another note: If you are pursuing a friendship or relationship with Merrill, a few actions in the Fade will result in rivalry points with her: 1) When you initially enter, she will disapprove if you choose "Justice, I presume?" 2) When you encounter the Sloth demon, if you choose to kill him immediately she will disapprove 3) When she is tempted by the Pride demon, if you choose the peaceful "Don't do it, Merrill" she will disapprove by 20 points. You can avoid the last one by choosing the sarcastic "Convincing argument" option, and you will incur no rivalry points.