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After you have completed the Dead Ex quest for Isaac, you'll be able to quiz him about what else there is to do in the city. He'll tell you that a Gargoyle has taken up residence in the Asian theatre across the street and all attempts to get rid of it have been met with lost limbs. If you're interested in dealing with the Gargoyle for Isaac, he'll give you the key to the theatre and mention that he'd prefer to have the Gargoyle for an ally - if at all possible.
If you picked up the book of Thaumaturgical Creatures in the Tremere chantry back in the Downtown district, then you'll already have a quick reference on Gargoyles. You're also going to want to pay a visit to Maximillian Strauss in the chantry to learn more about this particular Gargoyle. As it turns out, Max actually created the Gargoyle to serve as his protector, but the creature rebelled and Strauss hasn't seen him since. Strauss asks that you don't tell Isaac that he was the Gargoyle's creator or it could cause dissention among the clans.
You now possess some knowledge that can be used in two different ways. If you keep the secret to yourself, you will earn the respect of the Camarilla. If you betray Max and reveal the secret to Isaac, you'll gain two points of Experience, but will be permanently banned from the chantry and will not be able to side with the Camarilla at the end of the game. Shady and shifty or honest and true, your choice. As a side note, you can also keep the secret until the Gargoyle is dealt with, get the $500 reward from Strauss, and then still go back and tell Isaac about the Gargoyle's creation for two points of Experience. If you reveal Strauss' secret this way, you apparently won't be banned from the chantry.
Before you go to the Chinese Theatre to confront the Gargoyle, Strauss will give you the Rune of the Third Eye, an occult item that reduces the damage done by Gargoyles. With the artifact in your possession, journey back to Hollywood and enter the theatre via the front gate.
As soon as you step foot into the theatre, the Gargoyle crashes down through the skylight and you'll enter conversation with it. With some serious Persuasion skill, you can convince the Gargoyle to ally with Isaac, and this route will net you three points of Experience. Destroying the Gargoyle is worth three points of Experience as well, but kill it is not very easy. Guns and slashing weapons are basically worthless against it. The only truly effective weapons against it are your bare hands and the Sledgehammer. Wielding the hammer with a decent amount of Melee skill or throwing punches with a few points in the Unarmed feat should grant you victory. Once the Gargoyle has fallen, the quest is technically completed and returning to Isaac (or Strauss, if you're not a Tremere) gets you no additional rewards.
If your character is a Tremere... Strauss will offer to let you into the "pyramid", but only after you have dealt with the Gargoyle and kept its creation a secret. Becoming an apprentice here at the chantry gets you a very nice pad on the second floor, complete with all the amenities that you had at your old Haven - including your ghoul, Heather, if she's currently in your game. Additionally, the trunk in this new Haven contains a Utica M37 shotgun and the Daimonori occult item.
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