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Second tip: please go the official forum, there are a lot of people who will be glad to help you.
About your questions:
1) Balance spending. At the beginning, it is better to invest on the right equipment for your hero; don't forget about developing the economy; it is a delicate balance but you will soon get the hand of it.
2) Playing with the Warrior is probably the easiest way to start. A warrior does not need an expensive army, and a high level warrior with the right equipment can win a lot (if not most) battles by himself.
3) Do not waste money on guards. The enemy AI will always win (unless you have very high level guards, which usually are difficult to find and VERY expensive) and will get valuable experience in doing so; so let the enemy have a free path to you castle, catch him there and destroy him; then launch an attack to his territory (having a primary and secondary heroes will help immensely, but I don't want to get into that here).
Hope this helps a bit. Most importantly, just play to have fun and learn the game. You'll see that even 'impossible battles' will be easy to win employing the right tactic.
One last question...you said "don't forget about developing the economy"....how do you do so? Via building or via conquest?
But no matter what I do, the AI, despite being on beginner, completely pwns me. I had thought that with the setting being on beginner there would be advantages given to the player (me). I see nothing "beginnerish" about this level whatsoever. It's an extremely difficult game...
There are so many other games on the market that it is difficult to stay interested in one that is so off-balance play wise. Reminds me of Majesty 2 and the lack of difficulty setting it had.
I thought it was off balance too. Try to learn the encounters and what the monsters can do, focus on defeating the easy ones and dont overextend.
If you want a good allround party use Scout Hero with Shamans. The Shamans have magic ranged damage which very few monsters have high resistence against. They especially make short work of Undead. The Scout can focus on the few ranged troops that have longer range than shamans and should focus on pathfinding skills and damage when leveling up.
I got wasted my first shard as well, but then I picked the warrior hero for my next try and things are going MUCH better, the guys a walking tank, even at lower levels...combine this with some decent equipment and troops and you should have a good start. Then I picked a second hero(scout) to help out when I had a good economy going and could easily afford it.
Also pay a lot of attention to how hard your hero thinks the battle is going to be, if it even sounds like its gonna be hard, retreat and come back later once you gained some levels.
Also not sure what you mean about the lack of difficulty setting, its hard to miss.
How is the Scout a Hybrid? Hes a Sniper that doesnt have to use Magic at all. Actually hes probably the best Hero to kill Dragons(which are immune to Magic).