Usually I can figure my way out of these situations but this time I'm befuddled! Opponents respawn and I keep killing them, little Pelagius won't give me any help, the sultry maiden is nice to look at but useless in progressing, and the goat just sits there. The location indicating arrow remains. Need some direction from those more adept!! Thanks.

Use the Wabbajack. You've to turn the various creatures to something else in sequence. The first time I did this quest I thought it would be just fine to use the staff on pelagius multiple time after the dialogues. I was wrong!

If it's the one where he's sleeping you just need to keep hitting the creatures that spawn in, he then eventually wakes up.

You have to wabbajack the sleeping Pelagius, then Wabbajack the target, then Wabbajack sleeping Pelagius... The last target is a Dragon Priest.

And get the targets quick as you can. If you are too slow, they'll kill the little boy and you have to start over.