When you find the remains, you have not found the one you are looking for. Check your journal - it shows completed and uncompleted quests - for his name: Glumph.You don't have to kill nessie. If you are lucky (and fast) you can get around her, only taking one or two rounds of damage. Or if you can't get around her ....
** SPOILER **
There is another route to your destination, through the swamp.
Let her live, (breathing increases)
NO, can't let live (pause, shudder)
must have exp (pant pant)
No one stands before me (hysterical chuckle)
Die Nessie, Die (Drooling, attempts combat again)
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Seriously, I run to close combat range and cast guardian angel on each character. If you can keep each char protected, they will not be swallowed. (Of course, it helps if you have a faerie ninja with some really awesome weapons...)
DRD