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I did the opposite; I captured the lower castle and then immediately headed north. But not through the Phoenix Guard, but through the Elementals (they don't deal as much damage and don't resurrect). I built an army, developed both castles more or less, then hired a hero who brought an army from the south to the north and went to defeat Gilren, who was guarding the castle.
The sooner you capture a city in the north, the higher your chances of winning.