Even though you get unlimited continues, Wizards and Warriors 2 is a pretty tough game, mostly because Kuros starts out pretty weak, and the powerups are hidden in pretty obscure places. But, you can give yourself an early advantage.
Just go to the Password Entry screen and put in what I like to call "Q with a bunch of Ks"
Once that's in, you get plopped into the first stage with a shield, a helmet, 10 keys
and a full compliment of spells
Plus, the password is super-easy to remember. How could you go wrong?