See for yourself, I just finished it for the 20th time (almost

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). This red one needs to be replayed. You kill everyone around the fortress, go to Lucretia, get the quest, and run back to the fortress. You wait for him to approach (there are 2 paths near the fortress, an upper and a lower one). When he approaches the upper path near the fortress, run to the lower path and stand right under him. He'll go to the fortress, and while he's doing that, you quickly cross the bridge and turn right. Then turn right again (down). There will be a magical menagerie. Hire everyone there (40 wolves, 25 large wolves, and 20 mermaids). Then you don't have to be afraid of this red one. You defeat him, then return to where you turned right the first time, but go a little further up and to the left. And then turn left again (down); there will be an artifact merchant. You defeat the creeps next to him and get 25 liches. By the way, there's a castle right above that. I didn't capture it at first; instead, I went straight to the upper castle and defeated it (that's no problem).