You shouldn't have any trouble invising to the library, I don't think anything in the zone sees invis. I believe all the mobs in the library are merchants, and even if they aren't you should be able to hide in a corner of the room and stay out of LoS of the doorway.
I'm not sure if you can do the turn ins while KOS though, I didn't attempt turn ins until I was dubious. Skeleton form should take you to non-kos, depending on your deity. See if you can find a buddy with an Amulet of Necropotence! You could also potentially get someone to charm Lokar for you, which will make him indifferent, although I heard they may have nerfed this recently? Does anyone have more info on if charming faction quest NPCs still works?
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