Wow, you lost that battle? I didn't think it was possible to do that unless you suicide rushed them. In any case, yes, running around is a good idea, but when I played I generally kept Oboro pretty close, then when they took a step forward, I retreated him, them sent say Touka toward them a little bit, staying just barely outside they range. It's essential to keep a VERY close eye on the turns for this strategy, but in theory you can keep them occupied forever like this.
All the other characters I either sacrificed as bait or kept in the far four corners of the map. However, Im afraid I also don't know what affects the time limit. I just keep running. That, ironically enough, was the only level on Hard levels 3 and 4 that I didn't have to do twice. Don't bother fighting and run like a squirrel. However, make sure to destroy the rock next to Guraa and Dorii so they can be free to run as well. I typically task Oboro with this since he's close and have great attack power. Otherwise, they'll get trapped like rats and slaughtered, no matter how strong they are (though that goes for all characters in this battle).
On a completely different note, in the battle where Dii first showed up, I solo'ed both him and his general/lackey (that secondary boss guy whose name I don't remember) with Karura. I used her special combo and hit for over 1000 damage on each of them. I love how her Vitality meter builds up so fast. I mean, her power is unstoppable once she's on the attack. I have her attack and technique maxed out at level 20 this time around. It is endlessly fun because I allow myself to retry levels. Awards don't matter to me. Just pwnage, lol.
