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Snarling at Latharel's comment, Ledford moves up five feet and swings his greataxe at Kernsten.
Ledford attack, Kernsten: 1d20 + 5 ⇒ (13) + 5 = 18, 1d100 ⇒ 94
However, the Halfling howls in anger as his greataxe whistles through the fog, missing Kernsten by a whisker!
Larkin sidesteps behind Ledford to place himself in front of Targ, and attempts to pierce the Half-Orc's skin with his rapier. However, doing so leaves himself exposed to Targ's weapons and the Ninja decides to take advantage of that.
Targ AoO attack, Larkin: 1d20 + 2 ⇒ (16) + 2 = 18, 1d100 ⇒ 30
Targ AoO damage, Larkin: 1d6 + 2 ⇒ (2) + 2 = 4
Larkin attack, Targ: 1d20 + 2 ⇒ (14) + 2 = 16, 1d100 ⇒ 33
Larkin damage, Targ: 1d6 + 2 ⇒ (1) + 2 = 3
Targ's attack of opportunity scores a telling blow against Larkin who grimaces in pain. However, he manages to score his own blow against Targ.
1. Halli, action held
2. Targ, -3 hp, complete
3. Kernsten, complete
4. Crar, complete
5. Latharel, action held
6. Ledford, -5 hp, complete
7. Larkin, -4 hp, complete
8. Lillia
9. Deandre
Lillia to go!

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Round 2
Lillia steps back to her left, slipping past Crar and began her incantation. Deandre quietly moves up behind Ledford and Larkin, awaiting the chance to make her own attack! In the meantime, she channels some healing energy, and touches the angry Halfling.
Deandre cure light wounds, Ledford: 1d8 + 1 ⇒ (4) + 1 = 5
Round 3
Halli, still unable to see the fight impatiently fidgets as she remains at the end of the alleyway. Unable to see anything, she keeps an acid dart prepared.
Targ, Kern, Crar and Lath can make their actions just now.
1. Halli, action held
2. Targ, -3 hp
3. Kernsten
4. Crar
5. Latharel
6. Ledford
7. Larkin, -4 hp
8. Lillia
9. Deandre

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Targ, with a wounded opponent in front of him, tries to take him down, but only attacks once with his weapon. He then shifts 5ft back.
Attack 1 1d20 + 2 ⇒ (11) + 2 = 13 Damage 1d6 + 2 ⇒ (6) + 2 = 8 Miss chance 1d100 ⇒ 72
Bite Attack 1d20 - 3 ⇒ (19) - 3 = 16 Damage 1d4 + 1 ⇒ (2) + 1 = 3 Miss chance 1d100 ⇒ 62

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Using all his strength, Kernsten strikes out at the evil man in front of him, who swung the great axe at him (Ledford).
Power Attack with flail 1d20 + 4 - 1 ⇒ (19) + 4 - 1 = 22
Power Attack flail damage 1d8 + 3 + 2 ⇒ (8) + 3 + 2 = 13
Miss chance 1d100 ⇒ 45 low hits

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Latharel delays and waits for an opportunity to step in an fight.
Knowledge Local 1d20 + 5 ⇒ (14) + 5 = 19
Latharel tries to remember the layout and how long it would take him to get around the houses to attack from the back.
Still only space for 2 to fight and I don't see far enough for ranged attack. No worry - I'm fine with that. Just carry on. I'm in reserve should someone get hit badly and needs Latharel to step in. And I just rolled dice anyhow :)

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Round 2
Targ's bite catches Larkin in the shoulder and the Human screams in terror, although manages to keep hold of his weapon.
With an almighty swing of his flail, Kernsten mangles the barbarian's shoulder causing the Halfling to fall to one knee and cry in pain.
Moving deftly behind the two members of the group involved in the fight, Crar manages to position himself behind Targ and heals his wounds completely.
Latharel realises that it would take several minutes to work his way back around to the other side of the alley way, assuming that the main thoroughfare was still blocked by the performing artists.
On one knee, Ledford looks up at Kernsten with a grimace. "I yield," the Halfling says disgraced.
"Coward!" the Human female behind him shouts as she swings her short sword at the halfling's exposed back. However, her aim is off as the halfling collapsed to one knee, and her blow whistles over his head.
Deandre AoO attack, Ledford: 1d20 + 2 ⇒ (6) + 2 = 8, 1d100 ⇒ 72
Bleeding profusely from his injuries, Larkin takes the opportunity to flee the battle and pushes past Deandre and makes for the end of the alleyway. Halli, not expecting a member of her own team to come fleeing up the alley releases her acid dart as he passes her with an insane giggle. Her giggle dies as she realises it's him as he throws up his hands in horror at the burning dart in his face.
Halli attack, Larkin: 1d20 + 2 ⇒ (11) + 2 = 13, 1d100 ⇒ 51
Halli damage, Larkin: 1d6 + 1 ⇒ (1) + 1 = 2
Lillia finishes casting sleep, but I'll need a location to drop it onto. Deandre, assuming she is not asleep, will attack Ledford again in punishment.
Full of anger at her missed attack, Deandre continues to attack the halfling unabated. This time, her attack catches the halfling on his damaged shoulder and he cries out in pain, passing out.
Deandre attack, Ledford: 1d20 + 2 ⇒ (9) + 2 = 11, 1d100 ⇒ 59
Deandre damage, Ledford: 1d6 + 2 ⇒ (2) + 2 = 4
1. Halli, action held
2. Targ, complete
3. Kernsten, complete
4. Crar, complete
5. Latharel, complete
6. Ledford, -17 hp dying, complete
7. Larkin, -9 hp, complete
8. Lillia
9. Deandre, complete if not asleep

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Targ steps forward and attacks Deandre (unless he notices she is lying on the ground asleep) and Targ seems to chew his way through his opponents.
Attack 1d20 + 2 ⇒ (6) + 2 = 8 Damage 1d6 + 2 ⇒ (4) + 2 = 6 Miss chance (0-20 misses) 1d100 ⇒ 7
Attack bite 1d20 - 3 ⇒ (19) - 3 = 16 Damage 1d4 + 1 ⇒ (1) + 1 = 2 Miss chance (0-20 misses) 1d100 ⇒ 62

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Not seeing Kernsten step back out of the mist, Lillia shakes her head before guiding her magic blindly into the fog, hoping not to catch an ally.
Working on the assumption that Kernsten didn't advance, she'll target the spell 20' ahead of her (so just Deandre will be in the area).
DC 15 will save.

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Hearing the cackling laughter from further into the fog, Kernsten moves towards the sound, hoping to end the threat from (Halli) the mage's arcane power.
Power Attack with flail 1d20 + 4 - 1 ⇒ (19) + 4 - 1 = 22
Power Attack flail damage 1d8 + 3 + 2 ⇒ (8) + 3 + 2 = 13
Miss chance 1d100 ⇒ 6 low hits

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Round 3
Deandre attempts to shake off the effects of the sleep spell.
Deandre, Will save: 1d20 + 5 ⇒ (6) + 5 = 11
However, even her staunch faith in Norgorber cannot save her as she succumbs to the spell's effect.
Halli peers through the fog and prepares another acid dart, puzzled by the lack of sound of fighting. As Kernsten looms out of the fog, she manages to get off her acidic ray before Kernsten's attack crushes her skull.
Halli attack, Kernsten: 1d20 + 2 ⇒ (12) + 2 = 14
Halli damage, Kernsten: 1d6 + 1 ⇒ (1) + 1 = 2
Kernsten's attack is unfazed by Halli's counter-attack however, and she crumples into a lifeless heap.
Targ, do you choose to press the attack on Larkin? You'll be unaware that both Deandre is asleep and that Halli will be dead as Kernsten acts after you. Ledford is currently at 2hp, having had Deandre's attack retconned, however he doesn't want to die and has yielded and he has ended his rage.
1. Halli, -13 hp, dying
2. Targ
3. Kernsten, complete
4. Crar
5. Latharel
6. Ledford, -13 hp, yielded
7. Larkin, -9 hp
8. Lillia
9. Deandre, asleep

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Targ will move forward through the mist, when he will come to Deandre. he notices that she is asleep, and then carry on, until he reaches an alive oppponent.
your call how long it will take him, so, as he could reach Larkin will roll atack and damge.
Attack 1d20 + 2 ⇒ (2) + 2 = 4
Damage 1d6 + 2 ⇒ (6) + 2 = 8

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Crar stares into the mist, ready for more attackers. With vision obscured by the mist, he tries to listen for any more movement.
Ready spear to attack any other opponents that attack the party from the mist.
While readying action, listens for any more opponents putting up a fight.
Perception check 1d20 + 6 ⇒ (15) + 6 = 21

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Oops, Larkin should have been the first opponent that Kernsten reached. Ah well, I'm not going to retcon as the result will largely be the same.
Targ moves through the mist, but misses the form of Larkin who is still clawing at his face thanks to the acidic ray that Halli had hit him in the face with previously.
Larkin, aware of the sounds of combat around him, runs blindly towards the end of the alleyway, drawings attacks of opportunity from both Kernsten and Targ.
I'll roll them to speed things up.
Targ AoO attack, Larkin: 1d20 + 2 ⇒ (18) + 2 = 20
Targ AoO damage, Larkin: 1d6 + 2 ⇒ (6) + 2 = 8
Kernsten AoO attack, Larkin: 1d20 + 4 ⇒ (20) + 4 = 24
Kernsten AoO damage, Larkin: 1d8 + 3 ⇒ (2) + 3 = 5
Targ manages to drop the fleeing Larkin who lies prone, bleeding to death.
COMBAT CONCLUDED!
With one combatant sleeping and three more incapacitated, it is your call as to what to do with them.

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It doesn't take long to locate a few lawmen who handily take the enemy group prisoner. Ledford, the Halfling, admits that they had been following the group for the entire day with the intention of killing the group and taking their possessions.
"Don't you worry, we'll see that they get what's coming to them," one of the constables says officiously, "We'll get them sorted out."
You return to the Grand Lodge and find the Venture-Captain in his office, apparently still surrounded by paperwork.
"Excellent work," he commends the group, "I knew I could count on you. Don't worry, not every mission for the Pathfinders will be running around Absalom on errands, although I hear on the grapevine that you had some fun on the way." Valsin's eyes twinkle, letting you know that the Venture-Captain must have eyes and ears everywhere.
"As it happens, one of the other Venture-Captains has a task for you, but that can wait until tomorrow," Valsin says, dismissing you.
I'll get the Chronicle sheet up as soon as I can. You can finish up the roleplaying here if you like, and then we'll make a start to Part 2 tomorrow! Any idea what the event and date should be, officially?

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Latharel looks around.
"Thanks comrades. You have been a very good team. I start to understand how the Pathfinder Venture Captains get groups together to do their tasks.
Non of us could have done it alone and I'm proud to have made your aquaintance.
I will be going to market to stock up on a few items. I hope to find a good bow for me. You can meet me afterwards in the 'Leaking Roof' inn close to the lodge."

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And yes - there was another secret reason Latharel wanted to go to the Leaking roof. Two years ago when he urgently needed money in the hope he could cure his beloved wife he went for help to the owner of the Leaking Roof.
He should have known better as to deal with a Szarni - but he had been desperate. So he had traded in his beloved Elven Composite Longbow that he had used for so long MW Composite Longbow of Str. +2 - 600 gp.
Latharel now had some money - but he doubted it would be enough. He suspected that the owner had some connections to Guaril Karela. Maybe if he spoke to Guaril and pledged his obedience to his cause he might be able to get the bow back.
If not - well - he might just have to save up until he could afford to pay back the money that the owner of the inn wanted.