slavi-t
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I didn't capture the town near the dungeon entrance at all. Maybe I shouldn't have captured it, or at least not before capturing the others?
Try restarting the mission through the campaign menu and starting from the southwestern town, as Alan suggests. If you manage to quickly curse the town, it will be much easier. The mages become less effective afterward. If you're lucky, you can buy the most powerful high-level mage in the tavern.
Yes, I tried replaying from the middle and didn't touch it either; I just captured the western town late, but I methodically took them out through the east =). And I killed the green one right away by the river.