I also ran a bladeling as LN, so I asked Gansk the same question. The conversion he had said DR/bludgeoning magic, so he interpreted it as bludgeoning and magic. As it is written in the MMII (DR/+1, but only against piercing and slashing), it would imply DR/bludgeoning or magic. I will go with Gansk's interpretation, although it does not matter in this particular combat because the xeth does not have a bludgeoning weapon.
On to the fight:
Bob charges to 5N110E and misses (rolled a 10+2=12 for charge). The xeph drops his bow, pulls out his rapier, and flails wildly (rolled a 6). Your move.