What would you all say is the best setup to kill Minotaurs would be with the following limitations:

1) Hero Under Level 20 (so no good 2 hit spell/sac)
2) Creature no higher than Rank 2 (or possibly believable mercs/eggs)
3) Spell Rank 2, but 1 or 2 casts of higher ranking spells perhaps obtained via Scroll

The main problem I see about them is that they come even at lowest levels in groups of 4-6 so eventually their damn round attack can really hurt the Swordsmen even though they can stand upto the initial attacks because of good defense and Parry ability along with a Healer to partially help.

Mass Slow would really help before they are able to close with your forces and drain their stamina. This is always a spell I get before trying massive armies of Harp/Mants and other fast units.

Main strategies based around phantom form spell.
Basically, put lone unit far away from your troops, cast it on him, and let minotaurs lose all stamina.

Really good units to play with:
Slug + 3 medals of defender + phantom form. In 3-4 turns minotaurs will take tons of poison damage(don't activate berserk).
Ghoul +phantom form. Almost similar to slug. Somewhat easier - can counterattack forever (no stamina loss), somewhat harder - no medals and damage don't stack. While ghoul wouldn't kill any minotaur, his disease will work like mass disease spell. They will be seriously weakened.

Useful spells - web, sleep they rarely have high resist.

This hero(not mine, from old game) cleared some minotaur packs: http://savepic.su/1787379.htm

I really wanted to thank you again for this thread you made Gremlion. I had taken a couple month break from the game and this really helped when I came back.

It seems that the middle, or "Depths", of the Labyrinth is the best to search to try to find them for Hire.

My level 25 Warrior recently went into the heart and ran into 12 of them with an avg level of 11.5. He managed to win narrowly and managed to find Dragon Gloves.

1124 Gold and 212 Gems along with Dragon Gloves (HP +8, Resist +1 & Atk +2) and Boots of Speed (HP +7, Speed +1, Stamina +3, Initiative +1 and they are Light armor so Scout can wear them.) treasure was found. I also got 1032 Gold & 41 Gems Spoils.