Thanks for a fantastic mod, webusver. Thought I'd give a little feedback from my experience. Note that I'm also playing with Heroic Pursuits, so if any of these things are from that mod, please ignore :3.
On balance at character creation, some traits seem so far ahead of others I'd never take the others, and the same is true for weaknesses. In particular:
The circlet - The circlet that gives free enchantment upkeeps is so much better than attuned it's not even funny. If you have at least three enchantments connected to your sovereign (or to a champion you give it to) it gives more than attuned, and that is just about any caster sovereign at all. It's even more noticable for summoners; it quickly gives 5+ mana per turn, and in the early game that's massive. It's also in a slot that you have a lot of and that aren't usually filled with something important. I'd either make it a head slot + give a noticable weakness (like spell resist -20 or something) or make it cost 2 points.
The dragon mount - From an optimization standpoint, there's simply no reason to take any other mount at all, and the difference is so huge it's hard to motivate myself to take others from a flavor standpoint either. I can give up a wargboar for a horse if the horse looks better, but saying no to +5 defense and various other goodies. It provides a huge early game power boost to martial characters, far more than any trait, and it won't get replaced until very late game. I think it should cost two points.
Clumsy - This is such an obvious drawback for a ranged character it might as well just be a free point. Especially for mages who will never ever see melee. I think a -5 to accuracy and spell mastery wouldn't be out of line, that'd make it about equal to weak (-2 attack). The only reason not to take this is if you're a life mage with the circlet, since then you'd take scarred and cast regeneration immediately.
There is a notable difference between power levels among the rest of the stuff too, but they're close enough that they get used for flavor. It's just these three that I think are really out of line.[/spoiler]
On equipment balance:
Swords are too good by far; they do good damage and give a bonus to initiative, but they also get the single most powerful ability in blade rush. Not only is it multi-target autohit, it also allow you to attack a round earlier and put yourself in very beneficial positions. I think the ability needs to be dropped from standard blades, or at the very least nerfed a _lot_.
Club weapons are pretty much ignored, at least by me, the special ability isn't good enough to warrant the huge penalty to initiative. Giving a bit of armor penetration wouldn't be out of line, I think.
Axes, likewise, fall short to staves and by a long shot. Doing damage in the same ballpark as staves, they have an inititative penalty instead of a bonus, lacks a dodge bonus and has a worse activated ability. Their only saving factor is backswing, which granted is good, but an init 18 with backswing still won't hit that much more than an init 24 without, simply because it gets a lot less actions. I don't think the issue really is axes being too weak; it's just that staves are very good now, and their special ability is simply a better version of Cleave. Perhaps give the staff special a quite hefty accuracy penalty, or make it start on cooldown so it can't be used the first 5 rounds?
On the traits, the weaknesses seem to give too much extra points for too little penalty; you can very quickly create quite powerful troops that have a penalty that won't be noticable until mid-late game when they're retired anyway (like double damage from cold).
Again, thanks for a great mod, at this point I can't play without it
EDIT: Huh, realized you can't really use spoilers to compress text on this forum.
Also, one more thing I noted; Right now, these are the swords you get in early/mid game:
At weaponry: Heavy dagger, Atk +9/Init +4
At blacksmithing: Shortsword, +12/+3, Sturdy Shortsword +10/+4, Rusty Shortsword +8/+2 and Ruffian Sword +8/+1.
So, of the four swords you get at blacksmithing, two are strictly worse than the heavy dagger you already have, and by quite a large margin. Also, from a flavor standpoint, I really don't like to have to wait until blacksmithing to get something that looks like a sword. And lastly, it feels strange to produce rusty swords... So what if we move around things a little bit? To instead have:
At weaponry: Dagger, Atk +8/Init +4, Ruffian Sword +10/+3
At blacksmithing: Heavy dagger +10/+4, Shortsword +12/+3, Arming sword (looks like a longsword) +13/+2
That way you can give swords that actually look like swords a bit earlier, while in general retaining about the same power level, and getting rid of making "rusty swords". You also get an option for a longsword before Advanced Warfare, though granted the actual longsword has the impressive stats of +18/+2.