I haven't come across the lizard in the market place yet, Acornia. The only lizard I know was in Aleroth and he is gone.
Anyway I am out of that house. It was the house just north of the doctor's house. There were no other doors and the lockpicks didn't work. So I escaped another way and got even at the same time. I looted the house and overloaded my inventory with all the stuff I might find useful in future. Then I put my teleporter in my inventory in order to keep it and teleported myself outta there! I was back in Aleroth where I sorted my inventory, changed my armour to better stuff, then used the local teleporter to bring me back to the closest place where I left off. I just walked back and am now ready to continue my quests.
Last night I dreamed up that escape while in bed. Just couldn't sleep until I got that figured out. My BAAGS syndrome now has a RPG pocket.