There've been a couple of "how do I beat Niefelheim" threads. Here's one:
http://www.shrapnelcommunity.com/thr...part=all&vc=1.
The short version is, if you're Helheim, you shouldn't be fighting Niefelheim head on. Raid the heck out of him -- your sacreds should be able to easily tear through anything that's NOT a Niefel Giant (including PD). Force him to defend his capital, lest you pillage the heck out of it and shut down Niefel recruitment. Then hit him elsewhere.
