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Regarding whether I won or lost: it seems like it happened in the first game (it was the first game not only in Heroes III, but in the Heroes series in general). I was attacking neutral creatures and suddenly realized how awesome I was: I was defeating them all so easily! And I didn't even have a Castle (or rather, I did, but it was very far away, I don't know why) and there was nowhere to replenish my army. So I became arrogant, attacked with an army of a couple of dozen first and second-level units against phoenixes, and to my surprise, I lost.