Soon to be Errata, I should say.
I have seen a lot of players assume that the Militiamen in Castle Daerion Encounter 2 block movement for the heroes. This would mean that if the Heroes did well in E1 (saving 3+ villagers,) that they would effectively forfeit their first movement turn in E2.
As I seemed to be in the minority interpreting syntax in the rules, I asked FFG directly.
They confirmed that Militiamen are treated as Hero figures, and thus can move through Hero figures and vice versa.
This makes the quest more fair, and stops the OL from purposely throwing E1.