I had difficulty the first time as well. Then I switched to a team of Dryads, Ancient Ents, Unicorns, Black Unicorns, and Elven Archers. Use the unicorns for attack, the ent as a tank/shooter, have the dryad plant, and use the archers to knock out the crystal. The plant ability of the dryad is very important because it will allow you to create thorns which can reproduce on top of corpses. That'll keep the crystal from resurrecting troops. Do the same with the unicorns and ent and you should be ok.
As mentioned above, Black Hole helps a lot. Also the Gloth's (?) Armor is great for your elven archers. Additionally, if you can still raise the holy avenge ability, while appearing a waste, it will really help with the battle. Also the mass healing/undead hurting spell (light of life?) is fantastic for the fight.
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