CASTLE DEMOLITION (CD)
RECEIVER

Used to set up the parameters for town demolitions initiated by a player.

!!CD:XXXX; Used to set up the parameters for town demolitions initiated by a player.

OPTIONS

A$1/$2/$3; Lets you set up a Hero's army minimum HP to break a particular building type in particular town.
   $1=town type (see Format T)
   $2=building type (see Format U)
   $3=HP of all Hero's army
D$;    $=number of demolitions allowed per day
E$1/$2/$3; Lets you set up a Hero's minimum experience level required to break a particular building type in particular town.
   $1=town type (see Format T)
   $2=building type (see Format U)
   $3=experience
M$;    $=Hero's movement to lose per demolished building.
N$1/$2;    $1=number of demolition in one day
   $2=cost to break next building on the same day
P$1/$2/$3/$4/$5;  Used to set up a square on the map where the battle with these monsters will take place (as though it were really there) when you break their dwelling. This may be used for adjusting a terrain type and terrain bonus during the battle. Nothing more.
   $1=monster number inside town (0...7 basic, 8...13 upgraded)
   $2=x
   $3=y
   $4=l
   $5=relative(1)/absolute(0) coordinates

What's happen when you destroy completely your town and there are two heroes inside it?
External (visiting) hero has no choice just to go away for 6 days.
Internal Hero will be lost for owner :-) He become a nobody's hero.
He always stays inside and protect the town from everyone. If he wins,
he will gain experience :-)

Can the AI destroy towns?
AI cannot destroy a town at this time. The problem is that it's hard to formulate rules for this (though it is possible). If you want AI to break towns, you should use ERM script (take control when AI visits a town, decide for him what to do and break it yourself).
But AI will rebuild town including changing it to a native hero's town type.