We had a problem with this- combat length and grind, after much discussion we implemented the following-
All combat should be narrative specific, basically fewer fights- if I figure a 'lair/scenario' or sequence should have about five combat encounters (I think) in it I try to cut this by one and redistribute the XP to always include a skill challenge, or else beef up the four remaining encounters with traps or a few extra bad guys- thereby increasing the encounter level (within reason).
Action Point for every Encounter- and they can't be 'saved up'- so max 1 AP at any time.
Monsters at 75% HP.
Monsters do MM3 damage +25%- which believe me is a chunk.
We've been playing for about five sessions, only about 8 combat encounters so far- we do plenty of role-play. Of the 8 or so combat encounters all but one was done in 3 rounds- about 30-40 minutes play on Maptools- previously combat lasted 1 hour and seemed to go on for at least 4-5 rounds for the most part.
All the players have commented that it seems to work, and is far more dangerous, and HEROIC, for the want of a better word.
In our previous games (using D&D Core Modules, or else Goodman Games modules) then I've really struggled to wear the PCs down, or else reduce one of them to negative HP. Again this now happens much more often- our Battlerager seems to spend most encounters on 4 HP, the Warforged Fighter usually less than 10 HP. In 2-3 of the 8 encounters I've managed to get at least one PC down to 0 HP or below- they bounce back of course, but the increase in tension is noticeable.
I've no idea if the fix is done, the PCs have only just hit 2nd Level so there's a way to go- we may have to House Rule some more, or else re-evaluate at higher levels but it certainly seems to be working at the moment.
Our campaign can be found here-
The Knight Watch | Obsidian Portal
Cheers PDR