Elemental Forums
Not sure, but I thought I had this bug previously. I figured out that I actually had to casters who could cast cloud walk. If I didn't choose one of them, then the spell would cast, and the hero I was selected on would start marching.
Hopefully that helps? 
not at home, so I can't load your save 
To make sure that this does not happen:
1. Select the army of the caster you want to use to Cloud walk.
2. Right click on its current position, to clear any queued movement
3. Open the spellbook, select the spell, select the caster in the bottom on the right hand page, cast the spell.
I have not had the above behaviour since I started casting he spell this way.
It could also be what happens when you cast the spell when your hero is in a city.
This is still broken in .983. In the attached saved game, have Lord Relias try to use Cloud Walk.
http://www.mediafire.com/?i7ug06iu6j86i3d
The issue appears to be related to having the casting sovereign stationed in a city. If I move Lord Relias out of the city first, it works.
Anecdotally, I once cast cloudwalk when my sovereign had no moves left, and he burned the mana but didn't go anywhere. I haven't been able to replicate it, though.
I have been experiencing this bug in 1.02.
And, I have been favoring games where mid/late game most combat (and all heavy combat) it performed just the one unit, so every time I forget to unstation my unit I get this bug.
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