A good way to mod RTW to make it harder is to remove the upper-level buildings (Army/Urban Barracks, etc) from your faction of choice. Lower grade buildings mean lower grade troops, which means you will be using mediocre troops against the AI's stronger troops, without having to buff up the AI.
I also suggest buying BI, since the 1.3 patch included fixes a lot of AI problems, including the save/load bug.
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