Round One
With a ferocious yell, Carrach leaps into the backroom, attempting to skewer the grey-skinned humanoid
[attack roll, 8 on d20, +3 with longsword, total 11, miss]. The creature deftly sidesteps the attack, displaying remarkable agility.
Meanwhile, outside the shop, Vorik and Lia draw their weapons, moving inside the shop. Qoll rushes in, also, looking to help any of the combatants that need it.
Sando, bleeding badly, grits his teeth, crouches, and rolls out of the way of the creature, tumbling into the far corner of the room
[tumble check against DC 20, roll of natural 20, automatic success]. The gnome leans against the wall, winded and still very wounded. A trail of his blood follows him across the floor.
The creature looks at Sando, contemplating moving to finish off the gnome. Shaking its head, it turns and attacks Carrach, its rapier sliding into Carrach's left thigh
[6 damage]. Just then, Rothgar steps forward and brings his longsword down in a vicious overhand arc, only to miss narrowly
[attack roll, roll of 7 on d20, +3 with longsword, total 10, miss].
Status Report
Carrach has 6 hp remaining.
Sando has 0 hp and is
disabled.
Round Two
Carrach grimaces and, gripping his sword with two hands, hacks at the creature, catching it in the side with his longsword
[attack roll, roll of 11 on d20, +3 with longsword, total 14; damage roll, roll of 6 on 1d8, +2 strength, +1 for two hands, total 9 damage]. A thick, black blood spills out onto the floor.
Vorik finally arrives on the scene, bursting through the curtain just north of the main melee. The mage whips his dagger at the creature, only to see it sail wide and stick into one of the workbenches against the far wall
[attack roll, roll of 1 on d20, automatic failure; roll to confirm fumble, roll of 20 on d20, no fumble]. Lia, folllows, yelling "Halt!," but it would seem that the creature has no ability to comprehend the Common tongue. Qoll continues to move towards the melee.
Squatting in the corner, Sando throws his dagger at the creature, hitting it square in the back
[attack roll, roll of 19 on d20, +2 with dagger (ranged), total 21, hit; damage roll, roll of 4 on 1d4, total 4]. As the creature slumps to the ground, dead, Sando faints.
Rothgar cautiously cases the rest of the room, carefully checking the balcony above the party. He nods, all clear. Qoll frowns and heads over to the fallen gnome. A few small murmurs to the Ruby Goddess and Sando is back on his feet, only slightly worse for the wear
[cure light wounds, roll of 7 on 1d8+1].
Status Report
Sando has been healed from -1 hp to 6 hp.
Carrach has 6 hp.
Qoll has cast one 1st level spell.
OOC:
Douane had, via e-mail, instructed me to have Carrach charge in Round 1. Because of the way the creature moved in its last round, there wasn't enough room for a charge (no matter how much I wanted to work that out, I could only make a case for 7.5 feet of distance between Carrach and the nasty). In Sando's case, I would normally have tumbling result in the loss of a hit point, but because of the natural 20, I allowed Sando to remain disabled for another round. Good things happen on natural 20s. Fortunately for Vorik, I always check to confirm fumbles. 
Finally, the party has now reached level 2. Please see the OOC thread for details on how I'd like you to handle this.