There aren't many other quests to get us close to lvl 4, and those there are involve similar fights. And we use the dialogue loop-hole to position and buff prior to combat, and backstab when it pops off. This is with food buffs, potions, scrolls, every piece of armor we could buy from collecting every bucket and shell in the opening area. It's TPK in three turns with one bad guy burned down 2/3rds and the rest untouched. They do 30-50% of our health/armor per turn. Now we're stuck on the first big fight, the hound master group (also lvl 3) under FJ square. We're doing coop second playthrough together (Classic diff was a joke, so we thought let's up it).
Holy heck, I am stuck on Tactician mode at lvl 3.