I know this event is just about over. I finally got a streak of 0 deaths on this one, so I figured I'd write up what has worked for me.
This works "best" if you have a pet of some kind, but it isn't mandatory. I used the 'lock succubus to really good effect.
Park the team all lined up (being lined up is important!) facing the boss with the quest turn-in. (And I mean, exactly straight :P Arcane Missiles etc will mess up the next part if they aren't straight!). For location, I put them mid way between the table and the fountain, just in front of the fountain. Try strafing them back and forth. If they all stay in line, you're good to go. A little time on the prep really helps when the fight starts.
Put the tank on the purple guy, facing your team so you can see them.
Put the pet on "stay" at the base of the table, in Passive mode.
Have everyone use the Green potion, the Tank uses the Purple potion.
Have the character with the quest run forward and trigger the event. Make sure to use just the forward/back keys. Don't steer, don't mouse look. You have enough time for the event to start to back up into position with the rest of the team.
Once the event starts, go all out against the purple guy. You have about 10 seconds of free DPS before anything more complicated happens. The green guy will then activate and run at your DPS team. At this point, I send my pet at the guy. Since the pet was "behind him" due to the position, he'll run back a little bit and face away from the team. This helps because Chain Reaction can really hurt an undergeared team. The pet will take very little damage from Chain Reaction. If he is still too close, strafe the team a little bit further from him and keep up the DPS.
Frye will then activate and now the "fun" starts. The best bet is to focus on what color beaker he is holding, because that's the color of cloud you'll need to avoid when he throws. If he throws Purple at the tank, ignore it. If he throws green at the DPS, ignore it. It was hard to learn this at first - but as other posters have stated he is unlikely to "overlap" clouds. Staying in a matching color is actually a good thing.
Once the main guy goes down, switch the tank to "green" and hit your follow key. Run for the first Green cloud you can see and get away from the Green guy if you can (this is where the pet tank helps, as it keeps him "busy"). You'll probably need an AoE heal or 2 at this point (I've found myself spamming it).
Now keeping your team on follow, move your main so that he is between your team and Fry. Just run around your team as Fry moves, staying close enough to your team that they don't step, they just rotate - this will keep him "in front" of the team. Don't worry about tanking him. Just stun him if you can, but other than that focus everything you've got on him. Watch for purple clouds at this point and start spamming AOE heals (you won't need mana once Frye is dead).
Every once in a while Frye will get a purple potion on your team - just run for the next green cloud. I've had problems with this though - since sometimes I have a sea of purlpe to run through... just run fast and use your instant heals if you can.
Once Frye is dead.... back your team up, grab the green guy with your tank (a good distance away). And fall asleep while you kill him.
With a good tank, and some good use of cooldowns, I've actually solo'd from Frye at 30% (the other guy at full). If you have a SS or Reincarnation, save that for when you have Frye dead, then pop it to take out the last guy.
Hope this helps

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