OOC: Ras, you have the damage on the hand axe wrong if you wield it in your off hand. You only get half your strength bonus, rounded down, so it's only 1d6+2, or in this particular case, 8.
Raz does not drop the man (#5), though he does appear to be irritated with the dwarf.
OOC2: there are no holes, #1 steped back 5', and #4 steped in to fill in his place. As for the difficulty, giving them time to set up an ambush and then walking into it was not the best stratergy.