I don't want to intimidate Danica. I didn't realize who she was when I took the quest. Now Vilja (sp?) is hanging out by the front door and nobody else will give me a job. How can I tell him to forget it? It feels like part of the game is stuck now and I'm forced to be a jerk and possibly lose a story line?

I ran into a similar issue in Solitude where a lizard guy wants me to put out the light in a lighthouse to wreck a ship. I dont really want to do that and I tried to steer the conversation that way but now I'm stuck with a quest I dont really want to complete.