Reading about Descent history about this quest I could tell that this quests always favored heavily one side.However since no balance changes have been made for a long time, this quest is stuck with Sir Palamon having 4 speed, and 25hp with 2 gray dice.
My experience was this:
I played the quest in two player mode playing as heroes. All it took is to move him behind walls of militia and wait a couple of turns. Worse still, stats on all "NPC" stay the same regardless of the number of heroes. It seemed very easy for the heroes, even though they saved half of the villagers.
I have my own idea on how to balance it, but am curious on what the more experience players think. Does the quest need balancing? If so, what would be the suggested balance for:
2 heroes (I realize the 2 heroes usually favours OL in the rest of the quests, but those are another topic)
3 heroes
4 heroes
As one of the numerous balance suggestions (like moving 3, or either moving or summoning), I was thinking of allowing Sir Palamon to move 4, but only inside the throne room.