So I've made a Neutral Evil party and I've burned down the church at the beginning of the game. Now the quest says I should tell Terjon (spelling?). Here's the problem, if I tell him I did it I finish the quest but I am forced to flee since he has 250+ HP and is impossible to beat. If I talk to him again I can only attack or flee leaving me stranded in the main story.

If I lie to him he sense that I am evil and ask me to repent by going to the moathouse and kill the monsters there. The neutral evil opening quest stays incomplete though.

I don't want to repent but there is nothing to do if I tell him the truth. Am I just supposed to wander aimlessly and hope some random guy tells me where to go? That's pretty bad storytelling.

I'm using the New Content Circle of the Eight Patch/Mod.

I am using a Neutral Evil party, and I haven't told Terjon about my evil deed. You might be able to get the info from him anyway, but more than one person can give you the location of the moathouse. And yes, there's some annoying random wandering to do. Since you have Co8, the sign just outside the tavern should help.