Hammerfall isn't necessarily a town, but more a region within a region. There should be room for a few towns here, probably under one (assumed) leader (Ten Towns, anyone?).
By my calculations, this area should be about 20 miles from point to point. I'm going to put a small (as compared to the world map as a whole) lake in the center of it, and an inlet from the coast to allow for shipping.
This map will serve as an overland map for the Hammerfall region, and then we can zoom in even further for the individual town that make up the area.
I don't know if I'll keep this style or not. I think for it's purpose a top-down map would be best, but it'll take a bit for me to figure all that out. I might be working on this one for a while...
I'd love some feedback and ideas.