I'm gearing up to start running LCoB today. It looks very good to me; it needed some work to create eg a small village near the dungeon (for some reason there are no villages on the map, just a huge city & surrounding wilderness, hmm!), it looks very modular & easy to add stuff too, which I like doing.
Re XP - I'm not planning to reduce XP awarded, unless you expect your PCs to clear out every room in Barakus & dungeon on the map by 5th level I don't see the need. The scenario is full of encounters EL 6-9, I can't see any problem with challenging 7th level PCs and there are a couple (avoidable) ones around EL12+, I think it wouldn't take too much work to keep the setting playable up to 9th level; at 9th PCs get Raise Dead, Teleport & such and would prob be overpowered for the module.