Winning conditions: -Death of Great Dragon -Death of Dark Princess Larna Losing conditions: -Death of villagers -Death of Elwin Items: War hammer, Great sword, Wand, Chain mail, Plate armor, Necklace, Orb, Speed Boots. Heroes: Elwin, Hain, Scott, Sherry, Aaron, Keith, Lester, Jessica. Enemies: Battle group south: ( Minotaur L1 Bone Dino x4 ) x2 Battle group north: Larna Dark Princess L3 Elemental x6 Attacks when all enemies but her and Great Dragon defeated. Great Dragon L1 Gargoyle x4, attacks turn 5 Wyvern L6 Gargoyle x6 ( Scylla L10 Leviathan x6 ) x2 ( Witch L1 Wraith x4 ) x2 Villager NPCs: ( Villager Cleric L2 Civilian x4 ) x2 Orders option: Go west, go south, or stay.
Your forces come into this scenario pretty scattered, so you should make sure each character is ready to deal with whatever's nearest him/ her - you should know unit counters by now. Or, you could put your most mobile characters in the furthest positions, and have everyone group together at the center of the map. Whether you go offensive or defensive is your call, but remember Scylla are weaker on land, and if you charge them they'll probably still be on the water.
There are a number of ways to go about this scenario, but in general you should use the town walls and houses to your own advantage, since they provide terrain bonuses. Tell the villagers to go wherever you want, but having them stay where they are allows you to use the houses and walls as fortifications while staying within range of their healing spells. Just be careful that nothing slips through - gargoyles are good at doing that. Pikemen do well against bone dinos, but make sure you have some other unit types around to deal with the minotaur leaders. You should be able to handle scylla and wyverns by now.
The Great Dragon is not that tough, your best heroes should be more than a match for him. Hit him with spells, leaders, and powered up troops until he falls. If you decide to go after Larna, send your dragon lord and leave behind one angel for your characters to cast force heal and protection on. If you go for Larna, make sure that you do not kill Great Dragon while you are fighting her, since that will cause Larna to retreat.
If all villagers are alive at the end of the scenario, they award you with a crown. This is a very useful item, like an improved version of the necklace.