I had an awkward conversation with Arvix last week. The game told him to ask for a very large number in our negotiations for his hire. I had to break it to him that a 15hp hero with a steak knife and padded vest is just not worth that much on the open market. Needless to say, he cried a lot after that. If we could get this fixed, I think it would save the feelings of a lot of our nation's heroes.
The error occurred in the mid game, around turn 280. When I had to load a save due to a memory shortage, the new prices were quite the surprise in my court.
Here is a saved game, and a pick showing how good I am at the game and how much heroes cost: 
http://www.mediafire.com/?v3ohtaijez4zset
http://screencast.com/t/xmW4crXVNkT