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You said you already tried that but this is the only possible way besides reinstalling the game, maybe try it again. If that doesn't help, you will have to reinstall the game completely.
First exit Steam, then go to your Saves folder as described by Zensalin1. Open the folder and delete those saves you do not want any more. If you want to keep your player name and your place in the career structure then leave the .cfg files alone; otherwise delete those too.
To play again go to Steam/Steam Apps/Common/Stronghold and use the game's self-launcher. Hey presto! the saves are gone. You can create a copy of the self-launch icon on your desktop to make things easier. Do not use the internet shortcut supplied by Steam on your desktop or the saves will all reappear. This shortcut can be deleted with no harmful effects.
The downside to this is that your gametime will no longer register with Steam, but how important is that to you?
I hope you find this useful. Let me know how you get on.
I know i am a little bit late, but i had the same problem like you. But it is really easy to delete your progress. Disconnect the connection to the internet, than you go into your Documents folder and delete all data which is in the folder "Stronghold", when you have done this, you go to your userdate folder in Steam and delete the data in the folder "40950". When you did this, your start Steam in OFFLINE-MODE (it's very important). Then start Stronghold and give your game a name, then close the game and restart Steam. After you have restarted Steam and start again, you get asked which Data you want, the one from the cloud - or the data from your PC. You take the data from your PC, upload them to the cloud and you can play the campain again.
Hope i could help.
Go to Steam.. Right click on Stronghold-->Properties-->Updates and on the botton U have a Steam Cloud checkbox.. turn it off... delete stronghold.cfg and saves... enter the game and its restarted :).. if U want, turn Steam Cloud on again and when U start the game again, U will be asked if U want to import old saves or export new one :)