[edit] UPDATE: A GM kindly assisted me in-game last night and did a lil' sumpn sumpn to allow me to fight Molag and I was able to progress. If you are having problems, submit an in-game ticket and hopefully a GM will contact you.
Still getting grabbed and killed instantly by Molag Bal. I've tried re-logging, starting it over, spamming ultimate and X keys, still nothing. I submitted an in-game ticket and upon submission it asked if I was trying to report a player, which was odd.
This was reported earlier at
http://forums.elderscrollsonline.com/discussion/106354/quest-god-of-schemes/p1 but there are players STILL having problems.
Awfully frustrating spending hours trying workarounds when this is the end of the main story quest and the bug has been known about for almost two weeks now. Pretty sad and if it's not fixed quick it will be the end of my sub.