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So now I'm trying to figure out what to do with my 1 Empire Point. Do
I raid for gold? Build a mine on my lone mountain tile? Make a castle?

The humiliation.

I like your army list, but rolling didn't seem to help it out.
A few things though,

1)When his Knights ran into your wardancers after overrunning your glade guard, that wardance combat shouldn't have taken place until the next turn because they wardancers were unengaged. Had they been engaged, then the combat could ensue on the same turn.

2)Did your eternal guard charge his swordsmen or did they charge you?  I believe you still get the 2 attacks for the front rank on  the charge, can't remember, but if you were charged, you should have killed several of his with 15 attacks into him.

3) You are correct with the monster rule, the monster needs line of sight to charge.
Anyways, good game...hopefully you can do better in the next battle.
Currently I am in a similar campaign with my high elves, yet after 4 weeks I have not been attacked or attacked anyone. I have just taken all of their lands and strongholds while they were chasing other armies.

Soup

1. Ah, I'll have to post that to him. We didn't realize that was the case. Why is it
that way though? (Dangerous territory here) How come an engaged unit can
get charged twice, while

2. I believe I charged. I don't think you get the back rank attacks on the charge.
So that left 10 attacks, except I decided to challenge his battle standard bearer
with my general (I really wanted to try something new this game), so 8 attacks
into the unit and 3-4 (can't remember) into his bsb.

3. Yay.

The next battle I don't know who or what points level I'll be fighting. Hopefully
this time it'll be someone who knows the rules better than me.

2. Nevermind, I think he charged me. In his notes he says bottom of turn 3. I went
first, so he got the charge. I was hoping to draw out his knights, but he switched
things up and went for the glade guard instead. My multiple treesinging attempts all
failed to maneuver my forest template into a better position for me to make a charge.l

1) I will have to look up the exact page when I get home from school later tonight. If a unit is already engaged and the opponent has already fought a combat, overran into the other, then he may fight in that combat, only if the combat had not been resolved this turn. Its a new rule that benefits the charger so that they can choose the order of combats, overrun, and fight again...but each unit can only fight in two combats do so.....

I will clear this up when I can find the page so that you will know exactly what the rule states.

2) I figured thats what happened, you just didn't roll to well, or he made alot of 4+ saves.

3) My friend kept using his monsters as skirmishers, which makes them completely broken, and I couldn't avoid them. Once I found this out, it was easy to move around the beast or set it up for something nasty via shooting.

As for knowing the rules, it just takes time. There are many rules to know in fantasy. It is easy to forget one or two, or for someone to take advantage of them (not saying he did, just my experiences). My group is full of rules nazi's because we have a few players that will bend the rules if you don't know what they are talking about.

No it's not rules gaming. He's learning Fantasy alongside with me.