Personally I wouldn't bother much with the undead. There are much better troops amongst the living.
Priests are good, but inquisitors are better. There are generally some for sale in the magic academy (not the one in the starting area, the one in the next area where the abandoned castle is).
Dump the archmages, I don't think they do enough damage for their cost. Their special skills aren't that great either.
Unicorns are very good against undead, but odds are you can't get them yet.
You might be able to access alchemists though. They are a fairly strong troop - you can get some from the alchemist in the swamp region.
Keep in mind that bowmen do less damage against skeletons, shoot at them only if you have nothing else to shoot at.
Do you have the chest of rage yet? If so, feed the lizard guy poisonous things like snakes/spiders until he works for you. Use him in combat until he learns the armour spell - this is very useful for keeping a troop alive.
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