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In the Paladin, evil merchant, sick child triad. Most Paladins should have no problem buying a potion of cure disease. A Paladin would rarely have a need to detect evil on a merchant, so there would be no conflict. Even if the Paladin did know the merchant was evil; altruistically buying a curative to end the suffering of an innocent wound in no way break their code. This would be like judging newlyweds buying conflict diamonds as evil.
Once the greater good is served, and there are no more pressing concerns, the Paladin may want to spend some time trying to put an end to the merchants price gouging. You have to consider that price gouging would probably only be evil if the merchant really enjoyed and promoted the suffering it caused. Normally it would be case of vested self-interest, which is a neutral stance.

To the OP, the answer to your question depends on far more variables. To many players and DM’s get hung up on singular definition for each alignment. There are no absolutes in any system of morality, or lack thereof.
The only absolute about alignments in D&D is how they are affected by certain magic. This marriage between game mechanics and alignment is integrated into the mythology of the game. In my opinion, to remove it would dilute the flavor of D&D. But, if players and DM have a hard time arbitrating theoretical morality in a Role Playing GAME, may I suggest 4e.
There is no universally correct way to play a character of any alignment. The moral outlook of a LG Paladin can be as varied and diverse as a CE Rogue, within their own parameters. For example, a Paladin that follows a traditional code of medieval chivalry would face a dilemma if attacked by an obviously pregnant CE Barbarian. Another Paladin that follows a more militant code and considers men & women equal would simply declare, “I smite evil.”
One has to consider that attacking in the game may not always constitute intent to kill. As someone trained in the use of force, I understand that disabling an opponent with the “minimum force necessary” can mean shooting them center mass. If the morality is ambiguous a character should be given the option of “pulling” their attack. “The unicorn that is attacking you stumbles and is bleeding heavily. You think you might be able to subdue it or kill it with your next attack.”
I suggest anyone that plays a character whose powers or class are dependent on alignment come up with some type of code or alignment parameters. There are a number of very good resources in back issues of Dragon magazine and supplements from Mongoose Publishing; The Quintessential Paladin II comes to mind. This guide should be fairly simple and tailored for the individual character. There should be clear penalties for breaking alignment, as well as means of atonement.
I have a basic answer to the OP’s question. If the character is unredeemably evil (evil outsider) and could never escape without the Paladin’s help, then the Paladin presses the attack despite the outcome. If the evil character were of the mundane mortal variety then mutual cooperation would be expected. The Paladin would exchange his assistance to ensure that proper justice was applied to the evil character.

Ultimately fighters (and every other class) should be able to accomplish as much or little as the story dictates. We are talking about an RPG here. Whatever version of the rules you use means little compared the imagination, ingenuity, and resourcefulness of the players sitting at the table.
The flavor of the campaign should dictate how the characters affect it at every level. In a high fantasy setting a powerful fighter should have a good shot of wrestling a huge dragon to the ground. In a "grittier" campaign attempting such should be tantamount to suicide. The players dictate what type of game it is, not the statistics.

I agree the D&D character classes in are not equal, nor should they be. It's an RPG and should only play smoothly with a balanced party. If the party balance if off then the DM should shift the challenges, or it will be a frustrating short campaign.
As a thirty-year veteran of the game, I am little pleased with the "new" abilities that appear in each new version. Now that I'm older I do appreciate some complexity in my games, but at some point enough is enough. When you need a numbers, statistics, or dice fix, pick up a tabletop or board game and stop trying to make D&D something it's not.

I went with a Cartman-esk character. He became a genuine ally of the party, in his own evil way. He never physicaly harmed anyone in the group. Lied, manipulated, and charmed; but never personally harmed. I have plans on making him the players guide to the prison plane; if they can get along. "God, I hate you guys."

In my campain the Dwarven Barbarian of Kord befriended the mimic, which is the only monster he ever made friends with. The Mimic, Longjaw, foreshadowed that his older, meaner sibling had stayed on the level below. After the party gave it all their rations in exchange for the rat, they only returned once to make sure it was getting along OK and knew of the lower passage to the underdark.
Longjaw returned much later, having aquired a Ring of minor fire resistance, in the lair of the giant leader of the Flamewarders. Here it was able to provide some comic relief to a deadly chapter and fill in a few blanks the party had about the Cagewights. It was also a small reward to the Dwarven Barbarian, not every monster you let live comes back to kill you.

I like some things about that chapter. Kaourophon makes a great villian (expecially if he survives), the party learns much about the ultimate antagonist, and adventures on other planes are pretty cool. I think the wandering monsters and the vast amount of time spent getting everywhere are a major flaw. I was reminded of Lord of the Rings where the fellowship walked, and walked, and walked. My group would often play two or three sessions in a row just fighting wandering monsters. Nice for a break, but not fun over a dozen or so gaming sessions.
I would eliminate "wandering" monsters all together and just create a encounter, maybe two, per day of travel. It allows you to get creative and keep a handle on party XP and treasure. Set encounters will not get your party to 12th level or give them the recomended treasure per level (DMG Table 5-1; pg. 135). So use your "wandering" monsters to get your players to their goal. Have fun and good luck.

I generated "standard" treasure for all the wandering monsters before my party encounted them. It prevents- "Wow it had a necklace of fireballs, wonder why it didn't use it?" This means that the monsters only had part of there treasure with them (Why would a demon that could teleport at will be hauling around cumbersome treasure?). What they did have on them was weapons and equipment they could use against the party or other monsters. i.g. If a Vrock want's to take out another Vrock it needs a bless weapon potion and a weapon to put it on, preferably a large, cold-iron, magical one. Equipment sells for half price (or 60% if they made friends with Skie) and then there is the question of weight. Only my thoughts, have fun.

Beware Dugobras! He is a canny and powerful adversary. I think he could have had a TPK. Due to his alignment, I had him make a tatical retreat and called for parley. He was wounded, not bad, but had nothing to gain by risking his life (slight). I thought he would be happy crafting in peace. My group has not returned, but he could be used to harm or help them in future. The fey shouldn't be a problem, if your group uses fighters. Allow your group time to search for treasure, it's thin here. The effects of the fountain could help in the next chapter (the sun never sets in Occipitus).
You shouldn't have a problem kiling Alek, just have him charge. Good luck.

It sounds like you are having the same problems many of us are, trust me it's not your fault. I have DM'ed through The Test of the Smoking Eye with my group. Things do not get any easier for the players. I have used the NPC's to help and bolster the party. I have encouraged membership in the Striders for all who qualify (half my players). I have a few fair weather players that show up about once a month and use membership as a tool to get them in and out of a session. You can use the Stiders or the Chisel as a supporting cast. The heroes of Star Wars would not have gotten far withou the help of the rebel alliance. 007 would be dead many times over without MI-6.
These NPC's hold a backseat to players, only offering advise when asked and insisting on compensation for more active roles. "You want me do x for you, well maybe you could help me with y." This will allow you to help the party after a string of bad luck, without sacrificing credability, and allowing players to have control of the outcome.
I highly recommend adding a side quest or two to keep them leveled up. If they have had a tough time, give them something to kill and some cool treasure. The future chapters are tough and their are spots where exp can be missed or is woefully low. Good luck.

This will not be the last dragon your heroes face. For other ideas you can check out Dragon magazine #317 "Using power components" or Unearthed Arcana, metemagic components pg. 139. I have allowed my players to harvest some dragon parts with a knowledge (arcana) or appraise check to determine what is valuable. Then a survival check to harvest the item(s). It has not unbalanced my campain and rewards industrial players (I also DM deadly dragons). If you allow harvesting other creatures you should probably adjust treasure rewards. Good luck.

office_ninja wrote:

human monk/exotic weapon master/hulking hurler

Okay, you've piqued my curiosity. How does a human qualify for the hulking hurler prestige class, when one of the prerequisites is being Large or larger?

Just guessing, he has a permanent enlarge spell cast on him. I had a player try to pull the same thing.

We are about halfway through:

Ravanath Cauldera:
Jager- Dwarven Fighter 8/barbarian 3
Caroline- Wood elf fighter 8/ranger 2
Cutter- Human Paladin of St. Cuthbert 7/rogue 3
Na'cheya- Human Favored Soul 10
Thonis- Elven Wizard 10
and his cohort/brother
Firan- Elven Scout 8

So far only the Jager and Firan have never taken a dirt nap. Deaths were due to bad luck or poor planning, I adjust overpowering encounters. I do not recommned the favored soul, as a divine spellcaster, the lack of access to spells is a major drawback that has no compensation. Powerful spellcasters (both arcane & divine) are a must at higher levels.

I trust after playing a while you will return to use ever resourse you have. My advise is to remeber this is an epic campain, where good heroes do great things. Make friends with the NPC's, you never know who could help you out. Hopefully your DM will become attached to the good people of Cauldron and want to expand their role in the campain. Have fun.

If your party is down levels, you will find that The Test of the Smoking Eye will compound that problem. My group was in a similiar spot because of PC death. I added a number of wandering monsters in T.T.S.E., but the extra combat took too much game time. After a number of sessions that were: "You are traveling under the burning sky of Occipitus when you suddenly...", it wasn't very fun. I suggest adding some good encounters. Have them encounter a lost but powerful celestial or other good creature, befriend or help it and give them full exp. I would not advise giving a share of exp to Kaurophon, even though he should be giving the party a lot of help until the final encounter. Giving him a share of treasure would keep the party feeling he is part of their group, but adjust the treasure accordingly, he may escape the final test. Hope this helps.

I just finished that chapter. You will want to watch experience and treasure. I added some significant wandering monsters and my party still fell short of their goal of 12th level. I am planning a side quest to level them up.

Considering alowing Kauraphon to escape, if the party passes the test dispite him (The paladin in my group jumped into the flames). He would make an excellent reaccuring NPC for evil or good.