Here's what I'm most possibly going to do:

First of all the three casualties shall make new characters. After that I'm going to show a world in which undead themed monsters are coming down from the north.An expedition consisting of Fallcrest's army forces shall ride to try to destroy the evil forces but only 2 out of the many knights shall return.After that life will become a lot harder as raids from wandering groups of monsters shall be making travelling quite difficult. The remaining characters(the ones that didn't die I mean) shall take on a mission to escort a caravan of mechants to a nearby town.Accompanying them shall be the new characters that the others have made.On going there they shall be attacked by such a group.That group will be a group sent from the still-living Kalarel. And the leader of it will be carrying a message in which the evil deeds that are going to happen in the Seven Pillared Hall and Kalarel's previous actions shall be linked and that will hopefully drive the PCs to H2.After H2 they will finally confront Kalarel .

@tilt Your team won? Congratulations