1) I am pretty sure that we agreed on Ulm as a staging ground. (Milarqui- feel free to correct me). And to reiterate: any magic cast locally is fine (no magic cast by people or 'beings' not actually involved in the battle), any constructed items to help is fine as long as it is actually equipped on the champion representing the nation.
2) the terms are: whoever is defeated first loses
3) loss for ermor means i get their last province and they cease to exist as a nation and their pretender accepts that he's just some fool with dreams of grandeur and not a god (ie- game over). loss for mictlan means that we will give up Kitajima, Eriu, TirNaNog, Man, Maverni, Kymriu, Ulm, Machaka, Desert of 100 Tombs, Cyprus and declare them each independent nations with their own governmnents (we will keep our capital and Jaguars jungle which is culturally similar to us). We would return Ermor and Slavia to the undead nation and drop any claim to Bavaria.