ok this is my problem. on the rats nest i get my ass royally handed to me. i use the main guy and a level 4 chemist. in the other team i use a couple of monks that do quick punch( i think thats what its called) and on one person it takes off 99. what the hell is goin on.

try to get a wizard and a priest w/ throw item

I have the same problem and i use a priest and 2 wizards! It's still no use. I found one tactic that partially works. It is as follows:

In the front entrance you can pin in all the knights if you just put someone in the doorway. this way you can attack the knights one by one with two people (the person in the doorway [which is usually that guest guy by default cause he just charges in there] and i like to use an archer from afar. I also have a chemist in there to revive whathisface when he dies) Of course i often die beforei can finish my onslaught.

Level 4 chemist...? Err...no wonder.

Go back to areas like Mandalia Plains, and the Sweegy Woods for the love of god and level up. I was at level 18 before taking on that battle.

Change someone into a Wizard. That'll probably help you out. Also, it might be better to use knights instead of monks, since they can have shields and all that.

Yes, knights, knights are good. Level up as I said with knights, and learn abilities like "Armor Break", "Shield Break" and "Weapon Break". Those work really well. With those abilities, these guys shouldn't be too much trouble.

Also, a blackmage/wizard would be of great assistance.

Its best to get ahold of the Auto Potion early in the game and let someone stand in the doorway...that one person will mostly be healed all the time(75% chance of and auto heal). Then get someone that can hit far away(Wizards or Archers with bows).