But this time I talked with Paladin Hoss (I think his name was) and was able to run through with little problems. I think not taking the quest was what the problem was. So reactivating all mods then load before entering area - gonna play as normal and take the quest and see.
... and I give up for today. This is the most aggravating bug I've ever had to track down with F3. 4 hours of playing through that area and I'm no wiser.
I did level up on one of the playthroughs ... and it froze on level up screen. tried the fix above and was unable to test as it kept ctding.
[edit] I made one save of getting into the office where the initiate was trapped and he was dead already with no mutants near him to have done it - I've no idea what killed him nor does there seem to be any other mods that touch him. Not like this playthrough at all: http://www.youtube.com/watch?v=OwSnyeGZJYc&feature=related
This whole area is hosed - I'm going back to an earlier save and find another route. The game had been playing fine until I hit this black hole of problems.