Looks like there are other attack quest options that need to be used for NPCs. I will be messing with this tonight. I am sure this is why it wasn't working for me. I am glad to find this, as it will make the new event I was working on actually work
quest::attack("name"); - Attacks PLAYER "name", ONLY PLAYERS.
quest::attacknpc(entity_id); - Attacks NPC with ID 'entity_id', NOT NPC TYPE!
quest::attacknpctype(npc_type_id); - Attacks the first NPC in the zone with npc type 'npc_type_id'