It works using CLUA Console...but scripting doesn't work. I thought it might be a minor scripting error. Here's B#AR0302, the area script. And yes, i've tried using both EXTEND_TOP and EXTEND_BOTTOM in the .tp2 file.
IF
Global("B#StartQ","GLOBAL",1)
Global("B#Guild","GLOBAL",0)
Global("B#SpawnL","GLOBAL",0)
THEN
RESPONSE #100
ActionOverride("SHTHLT02",EscapeAreaDestroy(0))
CreateCreature("b#lathen",[574.290],3)
SetGlobal("B#SpawnL","GLOBAL",1)
END
IF
GlobalTimerExpired("LTimerA","LOCALS")
THEN
RESPONSE #100
CreateCreature("b#lathen",[574.290],

END
Not only does the old Lathan not vanish, the new one isn't created unless I use CLUA. Also, when the timer expires, the new Lathan doesn't reapear (used for a new quest/event I added).
Did I simply make some simple, n00bish mistake, or is there something about AR0302 i'm just not aware of? I even checked the script using DLTCEP, and it said it appeared correct. Augh!