This challenge was beaten at max difficulty without exploits or glitches.

Challenge is very self-explanatory. I got enough gold to purchase the equipment you see in the inventory, and made my way to the Ginith Ancestral Tomb, where the weakest vampire in the game is. I easily killed his minions and resisted his spells until he ran out of magicka and started punching. His first punch gave me the disease, so I killed him and beat the challenge.