I was able to spawn the “a fading spectre†3 times in the south-eastern part of the zone (hang a right as you exit the Paineel newbie hunting grounds). If you look at the online map you will see 2 (kobold camps) and the Nexus teleporter in this area.
The idea is simple, kill everything in the SE part of the zone, near the 2 kobold camps and the teleporter. At this point skeletons will start spawning south of the river. I did not see any skeletons south of the river until I started randomly killing everything in sight. Once the skeletons start spawning south of the river, the “a fading spectre†will eventually spawn.
So: kill em all, literally ---> skeletons ---> fading spectre
Do not go chasing the skeletons (decayed or otherwise) in the northern part of the zone, north of the river. Do not hunt any of the “an abandoned heretic pet†spawns or the 2 static skeleton spawns near the Paineel newbie ground zone entrance. You may well become much frustrated if you do!
The fading spectre spawned twice directly north of the teleporter and directly east of the northernmost kobold camp (look at the map). The second time he was his own placeholder and spawned immediately after I killed him. I consider myself very fortunate.
He spawned once at a location a little bit west of the kobold camps at (-1383, -849). The area loosely defined by the following four points (this location, the northern kobold camp, the southern kobold camp, and the teleporter) is where I hunted with success.
He dropped the petrified eyeball (needed for the quests) on the third kill.
The location from the previous poster didn't work for me, doesn't mean it didn't work for him, and your mileage may vary. By the way, I started the hunt at 6pm and then promptly lost track of time, so I'm not sure if the time of day matters.
Edited, May 2nd 2009 1:56pm by Mjodvitnir