Put 1 Tower in each of the light- colored spaces in the Castle ring. Any Tower can go in any space. Put 1 Wall on each of the lines between the Castle ring and the Swordsman ring.
Draw 3 Goblins, 2 Orcs, and 1 Troll from the Monster tokens. Place one Monster in each arc of the ring labeled Archer. (NOTE: During the rest of the game, Monsters will start in the Forest ring. Monsters are placed in the Archer ring during setup only, which allows the first player to hit or slay Monsters.)
Players choose which Monster goes into which arc, but there should be only 1 Monster in each arc. Place each Monster so that the corner with the highest number is pointing toward the Castle, as shown here.