Not sure on the second part....but to start the quest you have to make sure to see her during a private action back in Clik before it is destoryed. Also, pickpocket her then.
For the second part...I dunno. I think you have to go the final save point and then leave and do a private action in central city....but I really don't know about that but I'm pretty sure it is the truth. But be warned...Indalecio is no longer fun after that.
I don't know. I think I took it off without doing that, cuz after I kill him, he suddenly gets pissed off and some chick with purple hair starts hovers over him while he is casting spells while running around. I managed to beat him somehow, and I'm only level around 110. What is supposed to be bad anyway? I can't get the thing about limiter off or on, when I had to kill him two times to beat the game.
Eh, what I'm going to do when the world comes to an end? I'm going to put sugar on my cantaloupe.