Where the heck are these guys? I spent a lot of time searching the bridge district for them after obtaining this quest to no avail.

I believe that your party must be active at night to find the Fallen Paladins. As soon as you enter the Bridge District, turn player right to go down a small alley. The Fallen Paladins are behind the building arguing with some smugglers or other thugs. Their leader is not there the first time you meet them.

You have to go down an ally, sometimes you miss it 'cos it is quite small, they are basiclly behind a building near the exit

It is actually to the left, enter on the far right of your screen side, then turn left ;)

I strongly doubt you have to go at night

You don't. I went there when there were 2 suns! the normal sun and the one shining out of my arse. ;) So yeah, you can also speak to them in daylight. Its just annoying when they cast entangle ...

I usually kill the entangle caster before he gets his spell off

Ring\Potions of free action\freedom :p

Or Arrows :p

<-----New fallen paladin look. Nice huh?

The best way to stop the guys is t use rapid fire, their spells are few but they are good at them. Keep firing, especially with arrows of biting and acid and watch them fall............further.

You don't have to do anything with the fight as soon as you meet the paladins. They will beat the smugglers whether you help or not, and will still talk to you either way. If you want to attack the smugglers and get the (basically meaningless) couple hundred xp, use ranged weapons and force attack. Don't use any type of AE spell, as this will make the pallies hostile as well.

What does AE spells mean?

What does AE spells mean?

My apologies to anyone that may have been confused. AE = Area of Effect. This applies to any spell that does it's damage over an area. Fireball for example.

Two quick things.
First, I am sorry about the night thing. I don't think that I have actually done that quest in the daylight.
Second, "Player Right" is what I said and I stand by it. When you are entering the Bridge District, you must turn your party to the player's (i.e., your own) right. This is to the character's left.