Oh... God... I wouldn't normally help people with games, but since this game happens to be one of my favourites, of which I've completed umpteen times, I'll spread some wisdom on your... erm... toast. Yea, that's it.

Basically, you need to get your formation setup. You don't need a Chocobo for anything, since they're a waste of time. Get all of your characters "Auto Potion," straight off the bat. Another useful skill is "Teleport" since it enables you to warp at any height, and any distance. Obviously, the further away the place you want to move is... the less chance you have of it being successful.

Anyway, the best formation, I found, is to make Ramza (Your main character) a Squire, with it maxed out, and his second job skill as a Samurai. Obviously, change all of his abilities also, to match up with the giving criteria.

Chemists are important, and very useful. You'll most likely want to keep him in there, and don't change anything about him. Later on though, you may wish to make Mustadio a Chemist, learn all the skills, and change him back to a Mechanic with the Item ability, as well as Throw Item equipped. That way, you'll have a good medical character, as well as an attacker, when you manage to retrieve some of the magical guns later.

With that said, you could change the rest of the party into Knights, if you wanted. The rest doesn't really alter your chances of winning, unless you're too low of a level. Your best bet, in order to win, without question, is to set all of your characters to "Save Fading Life."

...that's normally a last resort though.