The Preacher is standing on the second floor of a building in an alleyway west of the Ranger compound entrance in Seward Square. From there he preaches mad "logic" to anyone that can hear him. He rants about the apocalypse, the sun, his headache and an evil worm that he plans to blow up. The alley he overlooks has been rigged with 5 frag mines and 5 mini nukes that he detonates if the Lone Wanderer tries to get close to him. There is a hostage (another wastelander) at the east end of the alley the Wanderer can talk to about the booby-trapped alley and the Preacher.
The Lone Wanderer can talk to the hostage and, with a Charisma 1 check, convince him to confront the Preacher for negative Karma. This will result in him running towards the Preacher but being blown up by the mini nukes and the Preacher dying as well.
Speaking to the hostage once the Preacher is dead (assuming he was killed before he could set off the explosion event) will result in no dialogue, but rather a comment regarding how quiet it is now. He will still stay in the same place however, as there is no way to "release" the hostage.
When the preacher is killed, the hostage immediately says "Good riddance" or "Better him than me."
If killed, his corpse will be in possession of an ear, suggesting he is a "good" character, although killing him does not affect Karma.
Dogmeat does not trigger the scripted explosion. This makes it easy to retrieve all of the mini nukes without using a Stealth Boy.
The wastelander states he can't leave because the detonation would kill him, even though he is out of the explosion area, and that he can simply take a different street that's not visible to the preacher.
xbox360 The player may find the Preacher dead and the hostage missing, but all of the explosives still in place. [verified]
pcps3 The Preacher will finish his sentence even after you kill him. [verified]
xbox360 There is often a possibility that the Preacher may not be killed by the explosion (usually because the player has managed to disarm the mines while wearing a Stealth Boy). This may stop any interaction with either the preacher or hostage, and the message saying that they are fleeing will appear even though they are walking normally. [verified]