Information about the Knights and Merchants fighting system
General damage formula

bool hit = ((Unit.Strength * PositionalModifier) / Opponent.Defence) > random(0, 100)

A unit can take up to (but excluding) HitPoints hits.
Positional modifier

Assuming unit X is looking towards the north
2	1	2
3	X	3
4	5	4	
Strength, Hit Points and Defence
Unit	Hit Points	Strength	Horse Bonus	Defence
Militia	3	35	0	1
Axe Fighter	3	35	0	2
Swordman	3	55	0	3
Barbarian	4	75	0	1
Lance Carrier	3	25	55	2
Pikeman	3	35	80	3
Bowman	1	60	0	2
Crossbowman	1	120	0	3
Scout	4	35	0	2
Knight	4	55	0	3

Retrived on 21/02/2010 from http://www.xp-dev.com/wiki/65851/FightingSystemInformation