I am looking to the head of raiker (sp)... I am in tradmeet still and I can't find anyone, someone told me a shadow theif in the NE side of trademeet will point the way. I can't find him.

SPOILER
You'll have to go to the druid grove
There, find the house of the potion seller

SPOILER:
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Yup, and be prepare for a fight if you decide to talk to the "witch" (only if you talked to the Djinns in Trademeet, she will attack you with her pals). Otherwise, the good old surround and force attack will do just fine.

but if you haven't talked to the djinnis but you do have Jan in your party, he will tell you that there are illusions everywhere in the place and the Rakhshasa will reveal themselves! Found this out a week ago when I first got there with Jan in my party

I've never talked with the Shadow Thief myself. I just got the Druid Grove map by talking to the Mayor of Tradesmeet and freeing Cernd. While at the Druid Grove doing Cernd's quest, you can find the Raksha.

Yup, well the Shadowthief is a "she" and she only appears in the afternnon ot night.