I had the same problem with the villagers dying...I saved my game on level one of the Dragons Eye...in the place near the exit where villagers were kept. THe villagers were alive when I saved. THen I rested and got disturbed by way to many lizard men for my comfort so I reloaded the game I had just saved....all the villagers were now dead.
Here's another oddity...I'm a big fan of that save, rest, and then go on plan...helps revive mage and cleric spells and so forth. So I was doing this throughout the level before I came upon the door to level two. I had a map from this site in the backgroud on my PC...its labeled with notable attractions such as places where the villagers are kept. I found villagers in none of these locations except for that spot by the door....I was thinking (after reading this thread) that maybe it was because I kept resting like that.
Anyone have any thoughts? If the captive villagers aren't that important I won't bother to go back and fix it (not like I can anyway with that wierd save thing).
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