Spoilers...

.
.
.
.
.
.
.
.
.
I'm 1/2 way through Watchers keep. I just battled a bunch of Giths near Lum's machine. And I walk into a room and find a Demi-lich! It's just there... It doesn't talk to me or anything. It was a tough fight, but sorta pointless. I mean, why would a lich be in there? It didn't even talk to me? Is it part of some quest I haven't gotten yet? It seems sort of random to be in there...

SPOILER
#
#
#
#
#
#
$
$
#
#
I don't think he serves any purpose. He kept casting an Imprisonment spell and I didn't have a Freedom spell so I left him alone. All you get is a ton of gold and couple of minor treasures. He may have had an artifact, but I don't remember. I may go back for him later now that I have the proper scrolls.

I'd been keeping an extra freedom scroll in my pack just in case I needed it. You're right. He had nothing that impressive. some gems and a +4 dagger...