Confirm a few things

[Zechnophobe]

He may have linked you to the Armored Princess mods, and not the Crossworlds Mods, or vice versa, which version do you have?

Also, The challenge ratings of bad guys go:

Very Easy
Easy
Equal
Slightly Stronger
Strong
Very Strong
Lethal
Invincible

This is a comparison of their leadership to yours. Considering you have spells, and a dragon, and items, 'equal' strength fights shouldn't actually be anything but a cake walk, and this becomes MORE true as you go through the game. Don't be too shy from trying Strong or Very Strong, especially if you start getting some good tactics down.

One of the things that makes this game amazing, is that there are some strategies that you can attempt that are VASTLY better than others. Try things out, look for combo's where you can.

Also, don't be afraid to play with your wanderer's scrolls a bit, especially the 'summon' ones. You can get some very advanced units with them early on, that can be amazing. A stack of Dryads or Royal Griffons from Song of the Wind or... just about anything from Call Colossus. It can really bootstrap you.