Have had very strange luck with this scenario. Tried it on Emperor as Bannor, found the starting position to be literally impossible.. capital could not grow past size 1 thanks to jungle unhealthiness.
Tried it on Emperor as Luchuirp, after several early defeats, I managed to hang onto my capital long enough to get Barnaxus and some wood golems up, clear the jungle and get access to copper, etc.. eventually quit the game because I was getting spammed by such massive numbers of orcs that although they couldn't take my one city I had no hope of expanding or winning anytime soon (Sheelba and her friend both had 4-5x my score, most of the other AIs had been defeated, the Clan basically controlled the map).
Last try, took difficulty down to Monarch as Ljosalfar, the elves seem to have an amazing starting spot that puts the dwarves and bannor to shame, lovely plains/grassland with no jungle to slow them down, the Clan hardly seems to bother them, you just see the occasional barbarian. So without intense jungle unhealthiness and constant Clan attacks, I was able to found FotL, explore a bit with hunters, was having a great time until - hilariously - the Hippus (AI!!) defeated Sheelba about 100 or so turns in. It creditted me with the victory.. this is not, I'm sure, how the scenario is supposed to play out..