OK guys, I did it! Pal/Normal/Verison 1.0 till mid-dwarves, then Patch 1.4 till the end.
Here are some corrections to my review notes:
1. Interface
Interface is good, but one haS //thanks Sol !// to know some hints that could be found (currently) either on internet or by trying. And NOT in manuals. E.g.
1.1. Pressing ALT in the battle mode is very important. Although it works differently in different patches.
1.2. R-Clicking on smiley in Unit information window shows Moral Bonuses. (at least in patch 1.4) (See also important moving hint at the end of this post)
2. Patches
Patches (fortunately or unfortunately) not only fix the bugs but also alter many other things that make the overall balance of the game SIGNIFICANTLY different patch-to-patch. As far as I understand, at this moment there are essentially THREE versions of the game:
2.1. Original version and early patches.
There was a "bug" in damage formula. Damage from low-levels to high-levels was a way too big, but was ABRUPTLY reduced with D-A>30.
This produced an interesting and INSANELY efficient tank-n-damagers tactics. Low level units were hit-dealers that exploited this "bug", attacking everyone with D lower than their A+30. A High-level unit, called a "tank", with his Defense (plus hero's defense as usual) bigger than 30+attack of enemy unit, was supposed to get every computer's units hits. This avoiding Computer to use this bug to his advantage.
It was interesting to see how some people understood this new reality directly from their battle experience, and adjusted their tactics accordingly. And yet some other people who refused to trust their eyes and trying to play "good old" HOMMV-style
E.g. one guy noted that his Swordmen stack tanks well ONLY in "defend" mode. Now we know the answer: defend adds only 5-6 to defense, but in his case D-A was lower than 30, but became greater than 30 after 'defence' and altered the damage formula.
2.2. (Starting probably with patch 1.3.) Game with "damage formula bug" fixed. My Patch 1.4 belongs here, and its a different game.
2.3. They say Patch 1.5. alters game balance even further.
All money-gold balances issues are somewhat changed, chest's gold increased etc etc. High levels availability at the beginning are cut.
Also, they did a lot to make the game not that easy till the very end. People say that initially, after dwarves locations one could hire a packs of dragons-giants and play auto-battle mode till the end. Game designers probably took proper measures, since it did not worked for me in 1.4 patch.
3. Moral issues.
As far as I understand, Moral issues are still not set in their final form. All-humans Bonus line is commented in files, so there are no moral bonuses for all-humans. However there ARE bonuses for All-Dwarves and All-Elves.
There are only five dwarves units in the game and they form a kind of "preset melee squad" for players who do not want to make teams of their own.
Moral issues of Elves are more complicated. Here one can exerscise his team-making skills. But it's Elven (driad-based) teams that REALLY rule. Or you can make no-male teams for Inferno Invasions, so that local succubs do not mix up with your army's males
'Agni ring' is probably a single most important artifact of the game.
There are also a kind of "robbers" subrace in human race and spiders-snakes and dragons subraces in neutrals.
So, contrary to what I said before, there actually ARE Race-n-Moral issues in this game, but they are not that simple, not given in manuals, are hand-made and may be subject to further changes.
4. Videocard
Game became SIGNIFICANTLY more robust with patch 1.4. I take my words on video back, 7600GS is reasonably playable at 1000x1600.
5. Bugs.
I had no 'crash' bugs in the beginning, neither intention to install any balance-altered patches.
However somehow in mid-game the game became increasingly crash-prone. I thought it's my hardware problem, since it was ok in the begining. But it was the patch that solved the problem.
Also, in many locations one can move through ONLY with arrow keys.
6. One last good hint (to my patch version though): do not spend your Magic crystals too easily. Unlike Runes, they are deficient till the very end of the game. Keep in mind that a useful third-level spell takes full 20 Crystals to learn. And also there are numerous spells of little or no use.