Oh, yes the mob drops Remains (and other loot) when killed. We did this on 3rd Jan 09 - it takes alot of effort to get to him. And then what happens? The coding is so naff the items drop underwater where they are inaccessible. Mythic bah!
My only consolation is that so many others in the BG wanted the Remains I would have been unlikely to have won them. Still, that's hardly the point...