GabbaHatt
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The Undead are manipulating their army. They can transfer it to one of their main heroes, or divide it among three. I had a situation where the main part of their army was in the castle (over 200 Bone Dragons, with the rest in proportion), while the heroes were running around with an army 10 times smaller. Weakening the Undead will reduce the time it takes for the player to accumulate an army to reach parity. The fact that the stats are roughly the same as Nikolai's by the time the player's main hero appears in the Dungeon is good. But, their army (in my case) is 50 times larger, so there is no hope of help from most spells. With Sandro's Cloak available, the number of "bones" doesn't matter much. I defeated both of them with a hero who has a weekly growth rate of ghosts.
I also have a few questions. My map doesn't end when I destroy all the enemies (I played twice from the beginning). During battles with the Undead, "Remove Curse" and "Holy Word" were not available - is this just a bug, or is it intentional?
I only finished the map yesterday - everything *ended* normally. Maybe you didn't complete the main quest, which is why the map doesn't end? As for Holy Word... maybe one of them had a Ring of Sinners, or maybe it's a bug. The only advice I can give is: open the map in the editor before playing.