Well I finally found a little time in my busy schedule to kill those hordes of goblins. It really wasn't all that difficult, it just took a bit of planning and of course, a little improvising. I gave those crossbows to my mages as DraconisRex suggested, and boy was that a good idea! I think the key was to sneek (stealth mode) up on them while they were pre-occupied with fighting the Targos Soldiers. Then either shoot them with bolts or fry them with flaming oils. That seemed to eliminate about a third of their force before they were even able to come in contact with the rest of my party. I also had a few monsters, that I summoned up, lay in wait for them, that obviously helped as well.
The funny thing is, I actually saved Targos TWICE! You see, the first time I accidently killed Mr Tamewater when I threw a flaming oil at some Gobies. So when I stepped into the Commander's building, I was viciously attacked by him and his Priest!! I was pretty distraut, however I knew what had happened and so I reloaded and did it again, only this time I was a little more cautious about where I threw my flaming oils. LOL
Hey thank you everyone for all of your helpful hints and suggestions, and yes, even you DraconisRex.