I think this scenario is among the most difficult. The first time I played through at the easy level my three heros were between 5 and 7 and I got through on the third try by going right, across the river. I then set up defensive positions around the church and baited the computer into attacking across the river. The problem with this approach is it takes a long time to get all the units across the river and into position. So I ended up with a bonze victory.
I'm in the midst of my second time through and just completed this level. This time my heros were almost maxed (Pfeil and Brennock at 9 and Dexter at 7 - I knew this one was coming). I went left this time towards the town. I then baited the first line of knights into attacking me at the town. Taking them out was not too difficult. I then rested and recruited and attacked the center. I used Brennock to soften the knights and crossbowmen in the center and attacked with my forces. With Pfeil at 9 he kills a knight each turn by himself and Dexter was pretty close to doing the same. It was surprisingly easy, although I still didn't complete it in time to get a gold victory. It takes a while to move the crossbowman in the forest on the right into position and then attack the town and the first row of knights without sparking all of the opposing forces in the center from attacking.
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