There are two stages to fighting the evil Shade. For the first stage he will teleport around, slashing at you with his claws and shooting streams of flame. He will charge up his fire attack. When he does, run up to him and press A or B to grab him in a "full nelson" move. Keep tapping A, B, X, and Y and Brom will come over and hit him with his sword, Zar'roc. The Shade will break free. Hit him with your sword when he gets close. Get him to half health and the second stage of the battle will begin.In the second stage he will continue to teleport around, but will also ditch the fire stream attack for another. He will float in the air with a large red bubble shield around him. Many scimitars will fly off the walls and will shoot through the air towards you. After they stop, run up and attack him.
As you start the final battle with Durza, hold R L and shoot Fire Arrows at him on his demonic steed. When he fires purple missiles at you, release R and keep L held. Press A rapidly, and Eragon will deflect the missiles back at Durza. However, when the Shade fires Fire Balls, you cannot deflect them. Just dodge them. Continue this until he is dead. There is a secret egg in this level, but is extremely difficult to find. Look for the telltale blue dot on the screen.
Hidden egg bonuses: