ChaunceyK: My party abandoned me. But luckily, I did save first. On the second attempt, I put the party in a hut & told them to wait, then took Old Yeller (the Familiar) out back & did what I had to do.
[EDIT]
Dammit! I STILL can't fight! I have no followers, summoned creatures, or familiars. I not only told them to Wait, I told them to Leave me entirely, and Gorrin STILL won't let me fight!
So how the hell else am I supposed to get in to see the Dwarf if I can't fight to prove my worth?
eh, eh, yep the party doesn't take too kindly to that sort of thing ;)
Hold on to that save in case you regret that decision as i think once you kill the familiar he's gone for good.
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You're all by yourself and he still doesn't let you fight ? That's weird. Maybe reload and try to dispose of the familiar and party before talking to the pit boss ?
I think there's a couple of ways to go and see the Dwarf without fighting. Persuasion probably works. I also think you can skip the fight if you have a certain book you should have picked up in Ashbury.