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Well, I completed this mission without any trouble at all. But in my first playthroughs, it was quite a challenge, even as a Warrior, because I was running away from enemies in dungeons, and they kept getting stronger and stronger. Plus, I didn't have the "Spell Power" skill back then. Anyway, this time it was easy. I just finished a long battle against almost 2,000 ghosts about half an hour ago, and I got 54 experience points for it (I was wearing a cloak that gave me +20% experience). But I couldn't level up Raileg above level 30. The only thing I didn't max out for him was "Fire Mastery," "Magic Resistance," and "Magic Reflection."
Added 3 minutes later Vadimh
In most battles, you can just deploy Hydras and easily win without any losses. A well-developed "Chaos" skill makes the mission a breeze. You can also take on Dark factions head-on.
I've used this method many times on this map. I would deploy only Hydras against enemy heroes in the field and during sieges, but the problem is that the Demon had a pretty good "Magic Power" skill, and he could take out 2-3 Hydras at a time. Since they regenerate an average of 40 HP, it's not always possible to win without any losses. They just don't have enough initiative, even with Raileg's "Haste" spell. If I had a "Ring of Swiftness" that gave +20% initiative, then yes... ))