After the near TPK in the animated torture chamber at 2nd level, the party did some other quests and returned at 3rd level and fought the gaolor and crimson ogre in the same battle. I put the ogre at full health since their were 6 people in the party at 3rd level instead of 4 at first level - it ended with one of the PCs dead (granted, it was because he was infected with the ogre's blood frenzy and attacked their herald, who didn't take kindly to that and retaliated). I'm surprised the gaoler didn't kill anyone - one of the PC failed each round against being frightened, but saved each round on his ability to bring her down to 0hp.
The party, with a replacement for the dead PC, so was now made up of a herald, 2 clerics, a rogue, an adept, and a wizard, made it to the room with Holzanger's sarcophagus. They defeated the spectre and 6 shadows, but not before 2 of them were cursed by the shadows and another was knocked down enough to have 4 levels of fatigue and 2 of strife (one from rolling a nat 1 on the death save and one for a shadow choosing to cause strife when hitting her when she was unconscious). I like the LU shadow's curse better than O5E's strength drain, but I'm ruling that the disadvantage on attacks only applies to strength-based attacks and not all attacks, since the other disadvantages are only for Strength saves and Strength checks (not sure if that's the intent, but it makes sense to me).
Now to see if they continue into the catacombs or retreat and try to come back at yet another higher level. So, yeah, it's still proving to be a deadly module.