Bookwyrm627: Did you finish MM8?
ZFR: Not yet, it's going ok though. I generally have 4 games started simultaneously:
_RPG
_Action
_Strategy
_Adventure/Puzzle/Other
I just finished Tzar:
http://www.gog.com/forum/tzar_the_burden_of_the_crown/how_easy_is_easy/post3 which freed up my Strategy slot, and the fact that there Normal was difficult prompted me to ask about difficulty here.
Alrighty.
One of the first questions to answer would be "Are you going to use Insecticide"? If yes, then the recommendation I've seen is to lower the difficulty you might otherwise select by one step (ex. pick Easy instead of Normal).
I don't use insecticide, so factor that in when considering my answers.
-This is a 4x, much more like Civ 2 than Warlords 2, HoMM, or Lords of the Realm. If you're pretty decent at other 4x games, then Normal is probably fine; you are unfamiliar with the mechanics then you might consider Easy for your first game. On Normal, you'll be on roughly even footing, stat-wise, compared to opponents (same number of spell picks, no big production bonus/penalty).
-I like playing with 4 opponents. Fewer oppponents means you won't run into anyone as soon (probably), and also there is more elbow room for each player (probably) so you and opponents will be stronger when you meet (hopefully). I have noticed that sometimes the opponents will all suddenly declare war on me, one after another, over the course of 2-3 turns. I generally find this survivable, provided they can't all actually pile onto me in game play.
-I favor large land masses, because it mostly (not entirely) removes having to deal with crossing water. Note that the computer is mostly pretty bad about dealing with water. If their race's units are naturally equipped to deal with water, then it isn't such an issue. If their magic is equipped to deal well with water, that helps (but is no guarantee). Also note that the size of the map does not change, just the size of land masses.
-Magic level mostly controls how strong nodes are (and thus how strong the guardians and how good the treasure is). I favor Strong, just because I like the good rewards.
-Be advised that there isn't really a tech tree like Civ 2 has. Not every race can build every building in their cities (though the building pre-reqs are always the same, regardless of race). Also, each kind of magic has its own feel and focus.
-Lastly:
this link provides an amusing description of the game if you haven't read it before.