Which is the truth, so by all means buy his rope, or tyrannize him into handing it over for free! ;-)
Go to the entrance to Deirex's Tower at 15 in Ust Natha. Don't prepare for battle – you won't need it yet!
Enter. Deirex immediately casts an Imprisonment spell on you ...
And the party finds themselves in the company of Jarlaxle, a renowned Drow wizard. Visaj also teleports in. They had this planned between them! And worse yet, they know you are a surfacer! So you have to do their bidding, or else!
Jarlaxle orders you to find the gems that contain the souls of his men. The gems can be found somewhere in Deirex's Tower. If you don't have them within a day, he will make it known to all of Ust Natha that you are not Drow. With that, he teleports you and your party back to Ust Natha, right outside the Lich's tower.
Now prepare for a Lich battle! Then enter Deirex's Tower.
Kill the Lich! Loot his body for the Lich's Tooth and the Jae'llat Wardstone. Then search his house for any useful treasure.
Once you grab Deirex's Gems from the closet at 3, you are teleported back to Jarlaxle's room. Jarlaxle takes the gems (which didn't contain his men's souls, by the way) and then teleports you back to outside Deirex's Tower. The party receives 10,000 XP for your trouble.
The quest is really over but with the Lich's Tooth you can now enter the upper room in Deirax's Tower. So why not do that? Enter and loot the lake at 6 thoroughly.
Also optionally, you can now invade House Jae'llat and kill everyone inside, then loot the place.
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