I have the armor of fear, I have destroyed the nests and now all that is left is the queen and the occassional bee she spits out. I have tried killing her, but apparently do not know where to aim my shots. Do I aim for her head, her body or where the bees are coming from? Or am I going at it entirely wrong to begin with?

Actually, The armor of fear is not neccesary. It might help but personaly I think invisibility is far better. However, you DO need the sword of Elwon wich is also required from one of the prisoners in the dungeons nearby. Usually by a solo male closed in in the room where 6 (or was it four) nests are placed closed together. He is in a narrow "crack" or path in that room. Once you have Elwons sword, go hit the queen with it. No other weapon works on her. I usually aim for her head, not that it kills her better, I just want the chrystal she drops and then get out of there. Armor takes quite some punishment on this quest.

Good luck!