The easiest way to take out Zud and his buddies is to get in their faces. My party consisted of a half-orc Barbarian (2), and elf Barbarian (1)/Sorcerer (1), a half-orc cleric (2), and a human thief (2).
I put my barbarian in front of the shaman and the cleric in front of the witch doctor. Under the 3E rules, casting a spell provides the nearest melee opponent(s) with an attack of opportunity, so they won't cast any spells as long as they are engaged in HTH combat. Zud will stand around and use his bow, so you can gang up on him after his buddies are dead.
I then had my sorcerer bombard the other spellcasters with magic missiles until they ran out. Then she went to help the cleric when his HP got low. My rogue spent the entire combat shooting at Zud with his bow and was generally ineffective.
The key is to get the drop on the shaman and witch doctor so you can get someone in their face early before they get a chance to start casting Hold Person and Magic Missile.
@Aragorn: When you're done, you get Deathbane (the elf's staff) and some gold out of the chests behind Zud.
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Jesus saves! And takes half damage!
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