No. The hero is placed in the nearest empty square.
That is incorrect, the hero may take an action to stand up, and is then placed in the closest empty space of his choice.
Just the 'no' was incorrect.
Yes you may take a stand up action if a figure occupies the space your hero token is in.
As Robin said, the quest(s) are best balanced around four hero play. If you are looking for a slight advantage in the heroes favor, three heroes is pulled more towards them in terms of balance.
The question was : " is the hero then unable to stand up while the monster figure is still on top of him?"
My answer was No and it was correct (i.e. "No, the hero is able to stand up and is placed in the closest free space").
I don't understand your nitpicking, but if it makes you happy, all the better for you.
BTW, standing does "take an action", but that is the only action the hero can take - your answer is uncomplete (see, I also can cut hair in four).
p. 10 of the rulebook : "When a hero is knocked out, he can only perform a stand up action".
Edited by Robin, 29 July 2013 - 04:04 AM.