Works fine.
But watch out, after your party defeated Xoroth Dreadstead, neutral NPC will appear, you need to speak with it to finish quest line.
I failed my first attempt, because during boss fight my party member accedently triggered aggro on that NPC with aoe and so I wasn't able to finish the q, so we had to reset whole instance.
Back in retail that Dreadstead NPC was friendly, not neutral as far as I remember. But can't be sure tho.