Welcome to the board, Variol Elmwood. [img]graemlins/happywave.gif[/img]
It seems Radek and Wyvern have provided you with the answers. One thing, though: Be sure that you have reset the adventure before deleting the characters. Otherwise they may have one or more "quest items" in their inventory. A character with a quest item in his or her inventory cannot be deleted.
I ran into the same problem when I played the game for the first time. It also took me some time and one case of reinstalling the game before solving the problem. I agree, it could have been made a great deal more obvious.
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Moderation is good so long as it is not exaggerated!
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