Sneed's Shredder is a giant lumber mill on legs. Sitting on top of the Shredder is Sneed who tries to chop everyone into planks of wood. Make sure you kill as many mobs as possible before attempting to take on Sneed, as he will occasionally use Terrify, causing your character to run in a random direction away from him. This could lead you straight into a mass of goblins if you haven't killed them yet, in which case the group will probably be wiped out. After you defeat the Shredder, Sneed will jump out and continue the fight on his own legs. He is still very dangerous in this form, do not attempt to loot the shredder or move on until you are sure Sneed himself is dead.