I just wanted to make sure this was right: Does the Nalir objective-ally count as an encounter card that can trigger Elfhelm's ability?:

While Elfhelm is ready, he gains: 'Response: After your threat is raised as the result of questing unsuccessfully, or by an encounter or quest card effect, reduce your threat by 1.'

If so, Elfhelm seems perfect for the Nin-in-Eilph encounter with only one player. He would negate all the threat gain from the quest stages as well as your loud dwarf ally.

Yeah, he's an encounter card. Have at it!

Even in two player or two handed, 2 threat gained each time instead of 3 (including the normal +1 threat each turn) is far better....

If so, Elfhelm seems perfect for the Nin-in-Eilph encounter with only one player. He would negate all the threat gain from the quest stages as well as your loud dwarf ally.

In multiplayer, you can play Defender of the West

Thanks guys. I couldn't see any reason why it wouldn't work, but it still seemed weird. The Nin-in-Eilph gave me a lot of trouble the last time I was attempting it, and hopefully Elfhelm will make things a bit easier.