careful what you ask for
 

Demonis quest spoiler below in white.

When the demon asks you what type of army he should invade with, choose the one you think you can most easily spank =) don't choose dragons like I did (bonehead)... you end up fighting against it the next time you visit the dwarf castle. Sure wish I'd chosen anything else.

It wasn't so hard to figure it out, since the guy himself tells you that he's invading humans world...

true, but I thought that I might get some kinda reward for giving him the best answer... instead you get punished ;)

Has anyone been able to determine if the different answers yield different amounts of XP as well? If so, it may be worth the fight picking the hardest option.