After the scene, equip, buy, feed, and leave. At this point I had all my characters equipped to the max that the shops would sell. I also had all dragons maxed out on Fire and Ice.
(Spinal x2, Deflesh x1) x2
(Magic Guard x2, Blade Guard x1) x3
(Deflesh x1, Spinal x1, Radia[BOSS] x1)
Treasure: High Drug, Drug Rod, Maximilian, Nimbus Robe, Holy Grass x5, Strategy Book, Sleipnir, Nulnim
Bonus: 7,000 EXP
Plow your way through the undead to reach a whole slough of Incubators. Some of these release enemies when destroyed with a thunder tech; others give some great items. If you wait 10 turns, though, the incubators start hatching enemies themselves! Here's the list of what has what (items are in bold). They're given from left to right.
Bottom row: Spinal x3, Phantasm x3, High Drug
Only release the Diseaser if you want an extra challenge; its Dark Breath can make mincemeat out of your characters! You'll also find lots of auto-cannons and structures around to heal the enemy, so use lots of Thunder techs this battle; they're your friend. 8-) Now for the other enemies... the Blade Guards and Magic Guards are identical except that the Blade Guards can't be hurt by any physical attacks, and the Magic Guards can't be hurt by any magical attacks (note that the special techs of Knights, Heavy Armors, Light Armors, Lancers, and Matelite are all physical attacks, while Dances are magical attacks). Remember that you can freeze the moat to get across if you like. You should send one party of Wizards to the left and one to the right to pick up the treasures there, while setting their Dragons on Go!. But make sure not to kill Radia before getting them! Try to get Radia from a distance, because she'll keep summoning helpers if you go close-up.