Perans is indeed within his own world- although he exists in the world of the players, his magical potential has allowed himself to birth an entire small unvierse within his own head. The two men who had kidnapped Perans accidentally transported their own minds into Perans' world when they attempted to cast diagnostic spells upon him. Perans quickly obliterated the two men, seeing them as intruders into his world.
Perans has moved into an area of seclusion so that he may finish his universe in peace. He will ask the players to leave him in peace so that he may continue his work.
Should the University or the Necromancers try to stop him, Perans will drag them, and the players into his world so that he can stop their agressions.
(At which point the players have to decide on helping or hindering Perans.)
Strolen, thanks for digging this one out. Long ago, when I was still a young man a I would visit this site to get ideas for my campaigns. I hadn't yet joined, I didn't leave or read comments, I would only grab ideas. This may have been the first thing I read on the site. Indeed my four 5s dungeon is a direct expansion of this idea; an old dwarven mine filled with complex puzzles. This vote is shaded by some personal affections and inflated by nostalgia. I have been looking for this for years, NOW if only I could find the order of twilight again...it is somewhere on the interenet.