I created a "Queen's Light Infantry" unit with leather armor, spear, and the Veteran (+1 level) attribute in a city buffed by Heart of Fire Enchantment that had 3 essences. The unit cost was very high (over 200 resources) and appeared to be building with the correct length of time. However, the unit produced was only level 1 and did not have any buffs to attack.
Details:
Steam Version of Fallen Enchantress, up to date as of 11/1/12 (I cannot find the version in the Read Me file or any other place in the game directory)
Race: Player made (Wraith) (Guile, Stealth, Death Worship, Light Plate)
Sovereign: Player made (Wraith)
City: Level 2 Town
Enchantments: 3 were active (the +1 mana one, Oppression, and Heart of Fire)
Heart of Fire was cast by my Champion, not my character.
Unit: Custom, Leather armor (but not leg pieces), spear, and 3 attributes: Constitution, Lithe, and Veteran. I created a unit without veterancy and there was no difference in stats with the unit that said it had Veterancy.
Additional Bug: I cannot edit my player made factions or sovereigns. Since I create detailed backstories for Roleplaying purposes, this means I have retype the entire story multiple times, even if I want to make one small change (which I did multiple times, because I am new to this game and exploring what things do). I had multiple sovereigns with the same name until I deleted them. Please do not tell me this is a "feature".
Lastly, I was getting C++ crashes to desktop after a couple of hours of play until I updated my ATI graphics drivers for my Radeon 5700 HD, so I am willing to accept responsibility for things on my end. However, last night when I attempted to "click too fast' while the game was thinking (hourglass), it froze up and Windows (7 64bit) reported the program was no longer working.