I recently started a RtL campaign with 3 other experienced players. We're all very experienced with RPGs and all felt comfortable with the rules.
The overlord chose The Spider Queen avatar. Party composition seemed good (Varikas the Dead, Laughin Buldar, Shiver and Red Scorpion) and we started off positively smashing the OL. In the first dungeon we played through the top two levels within 2 hours with only a single party death due to a poor player choice (Shiver ended his turn adjacent to Laughin, OL played a Dark Charm)
On the third level the OL got incredibly lucky - he was able to spawn a red troll and (going from memory here) Rage and Aim. In a single attack he was able to kill 3 players - two of which were at almost full health. At the end of the dungeon the overall score was 17 conquest to the party, 25 to the OL. The party was able to loot only 2 pieces of copper treasure but tons of gold (several thousand in all). The OL was able to immediately upgrade beasts to Silver.
The following dungeons and encounters all proved to be too difficult for us to even get a little bit of treasure out - in the following 2 encounters and 1 dungeon we haven't found anything even approaching a close fight. Most are beast heavy and it seems as though the OL has a huge power advantage that will only become more extreme the longer we play.
What are we as a party doing wrong? Obviously when we saw the troll we should have scattered - let the ranged characters pelt him and fall back, but is there any way we can come back from such a big early-game victory? While we can afford any treasure in the market we want to pick up we only get to see 2 per week. The OL already has his Lieutenant sieging Frostgate and if we stop to train for a week he will almost certainly take it over before we have a chance to pick up Eagle Eye for Red Scorpion (who is pretty mediocre at range without some help). If we can't pick up some treasure between Grayhaven and Frostgate I'm afraid it won't matter - we'll be clobbered by the Lieutenant.
We agreed to use the divine favour rule from Sea of Blood, but it's never come into play.