@Sepuku: It wasn't really a dumb question, I just didn't really figure what you meant.
No, characters cannot act as reconaissance - for either themselves or on behalf of a nation. They may get information about things during their turn that you, as a player, can tell others - I don't care. But they can't be explicitly used for recon.
@Wolf: There is only one character available for hire: Magnadine, through the Hippus. None of the others can be "officially" hired because you don't have anything to offer them. Unofficially, you can cut as many deals as you like, but there's no guarantee that you can trust the character in question - only Magnadine is punished in any way for violating agreements, and even he will have a certain amount of leeway in the right situations.
Actually, the above statement isn't quite completely true. There may be a character or two that you could potentially offer things to, but on the whole, I would doubt that you'd want to be closely associated with them. For instance, you could offer some of your citizens to Duin; but would you?
Anyway, back to Magnadine. He's useful because he does exactly what you asked - he leads battles personally, and can hold a great influence in them. Hiring or having him can be a huge difference-maker. Other characters can take an influence in battles as well, although they'll generally be "behind the times" (their update comes afterwards, remember) and their influence less palpable. The exception, of course, is any battle between a character w/followers and a nation.
I know some of this isn't quite clear, but hopefully it'll make more sense as we go through a couple updates. Speaking of which, I'll be at home this weekend, with a slower Internet connection - the update may come a bit later that I'd hope, probably Sunday instead of Saturday. I do still want orders by (my) noon on Saturday; anyone that cannot make this deadline should contact me as soon as possible.