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This game is a little idiosyncratic at times. The best fix for such problems seems to be to leave the area, and log out for fifteen minutes, and that usually will have the desired effect of resetting the instance, and by default debugging it. There is also the possibility that a uncompleted quest is bugging the quest you are on.
This is purely speculation on my part, but I believe the biggest culprit for these problems are suspended group dungeon quests. You know that dungeon quest you started with your friends, but couldn't complete. So instead of abandoning the quest in your journal. You just left it hanging there. Clearing those quests out of your journal does seem to help a lot with problematic quests.
I had similar technical issues the first time I tried to do this quest, and the first method resolved them for me, and for those who are complaining about the terrible difficulty. I only attempted the first method after clearing that room five times in a dozen attempts. It may be on the difficult side, but it is far from being impossible.
I know what I am going to say will sound crass, but if you are having incredible difficulty with this quest. So much so that you think you just have to have a good friend to help you out. The issue isn't the game. The issue is your build. You can not be entirely one dimensional in this game. No matter your class you need to have skills more typical of the others.
So when your typical strategy fails you. There are other strategies you can try to find out which one works best. I faced this dungeon at level thirty, and I did it with a sorcerer wielding a restoration staff. In a mismatched set of armor. I did not use food, potions, or teleport either. Plainly speaking I didn't make special preparations, and while I might like to think I am special. I seriously doubt that I am that special.
The best advice I can give anyone having problems with this other then varying their skill sets would have to be mobility. If you keep moving sooner rather then later the bulk of the mob will fixate on your companions. As long as you don't drag them away from the entrance where your companions are standing. I used a pet to root most of the mob in the center of my companions formation. Where they eventually turned on them, but I am sure there are other equally good strategies to get them rooted there. To thin the herd as it were.
the problem isnt that the quest is hard its that if you dont succeed the first go - it can get bugged where you cant finish it .. and then you have to do all those dream sequences again .. which i really really really dont want to have to go through again .. only to maybe fail first time again and get bugged .. i think i will wait ... to see what GMs say.
Tried to do this quest as a level 24 NB. Experienced the same issues that everyone had, mobs that zerg, NPCs that just stand there looking at their navels while the mobs stomp you into the ground, etc. Oh, I had a neat bug that wasn't mentioned: one of the skels knocked me back in between the doors so that I was trapped in the small space where I couldn't hit them, and they eventually smooshed me. After a couple dozen or so tries I'm giving up. I get that it's supposed to be hard, and I like that. Impossible though is no fun.
Guess I'll come back in a few levels once I overgear/overlevel the encounter. WTG ZO.
EDIT: Okay, I guess the 28th time's the charm. I found that it is enough simply to cross the bridge and use the portal to leave the encounter, then use the NPC to port back in. That will reset the encounter, and you start with a clean slate. I walked into the room just far enough to trigger the skels then backed away to the door. I only attacked the skels that attacked me, and the NPCs took care of the rest, and even flung a few heals my way. Once all the skels were dead the group moved on and I was able to finish the quest.
The keys seem to be a fresh encounter and only attacking the skeletons that attack you.