Yeah, it's pretty buggy. I've also noticed it seems to spread my guys out all over the darned place, while all the enemy guys are nice and bunched up. I have to spend my first couple turns just trying to get my folks into some decent order before getting swarmed. And if I'm fighting anything really fast, they surround my poor little lonesome guys and smoosh them into a red smear on the rocks before I can get any help into position.
It really sucks rocks for the early part of the game ... once my guys get beefed up a little with decent armor it's not so bad, but those poor little starting militia and spearmen ... they're just mobile monster chow. Sort of a sick monster meals on wheels.
I'd be nice if you could specify formation type or something.