Nightwalk gave me a quest to retrieve the ruby...i read the book, accepted the quest and im looking at the world map, but i dont see the quest location anywhere. What exactly is it called?

The Ruby Glade, I believe.
Now, I know once you've read the book you have to talk to the halfling again to get the location marked in your map. However, if the location isn't on your map in some obvious manner, the exact coordinates are 794, 248.
Now all you need to do is get the location of Quintarra so you can easily find your way through the mountain range and sneak your way to the ruby. Unless you want to kill those demons all at once.
If you're one to wear lots of armor and have several companions, take EVERYTHING off. Make all your party members wait. Make sure you have something in your prowl skill. Steal it, then prowl back. Otherwise you'll have a bunch of hellbeasts bum-rushing you.

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Thanks, got it.

I had the teleport spell by then and managed to teleport over easily. I was really dissapointed when the 7 demons showed up and i three shotted them with fireflash though. Well i was already level 30+ at this point from all the side quests and stuff, but it still felt anti-climatic.

Are you playing on hard? It might help if you feel like the game is lacking some oomph.

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The chemistry must be respected.

Hmm i dont really find the game hard anymore now that i have sog and chukka with 20+ str and 20 dex. The balanced sword magnus can make makes all other wepaons obsolete because fast > slow.

My main problem is urnning out of fatigue when casting spells even with 2 arcane staffs. Oh and followers stealing xp because the game doesnt give me xp for their kills.

The game does give you XP for their kills, but not for their hits.

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生者人之始也，死者人之终也，生死人之大道也。

You said you have ~50k coins. Just stock up fatigue potions.

And/or buy a few Mage's Staves.

And/or boost your healing rate via items or investing character points into constitution.

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Where we're going, we won't need eyes to see.