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[CapnZapp]

I think the crucial question is:

How much higher level is the BBEG really?

In previous editions, you could have a monster/NPC five levels higher and this could make the PCs hesitate a lot.

In 4E, without making that NPC a Solo? Not even a contest.

Thus, my answer would be: run the encounter as planned, and pull no punches.

However, unless the NPC is a Solo at least five levels higher than the PC party, they won't even need the Royal Guard.

Meaning: for your concerns to come true (that the NPCs will overshadow the PCs) I'm thinking the Royal Guard itself needs to be perhaps five levels higher than the PCs (and that's assuming they're of the Soldier role) and the BBEG perhaps 10 levels higher. Yes, a full tier. And if he isn't a Solo, and isn't surrounded by allies and underlings, he really should think about fleeing a.s.a.p.

4E is a game of action economy, and unless you completely discard all pre-4E notions about level disparity, your players will grab all the spotlight anyway!

Zapp

(To instill some proper fear of the Underdark into my players, I had to resort to a Balhannoth. Yes, that meant a level 13 Elite against my party, who was level four at that time.

Anything less, and they would 1) have attacked and 2) they would have won. Single non-solo creatures simply do not work in 4E as written.

I learned this lesson the hard way, when they at 2nd level trounced a Trap Haunt; a level 8 Lurker. In 3E, this would have made for an interesting encounter. In 4E, it didn't stand a chance which made for a fight that not only was unexciting, but frustrating and whiffy too... And no, I hadn't read Stalker's excellent "guide to anti-grind" back then)