If you have not played Shadow Dragon (or recruited Norne) before: pick normal so that you get the Prologue, kill off Jagen/Gordin, get Norne. If you have played it before, pick H1. In either case, regularly cull the army of worthless meatsacks that are of no use to Marth the Tyrant, so that bonus chapters can get you... more worthless meatsacks to unequip and send screaming into oblivion.
I think Medeus might actually be the hero.
P.S. Use at least one ballistician, they're the coolest thing in Shadow Dragon.
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I don't like this duchy. Now, it's an adventurer.