In mm7 my favorite combination is: Knight, Knight, Archer and Paladin - it gives you an incredible offensive ability with moderate-good access to elemental and self spells.The experiment I did only recently with a Paladin was to pump his spirit skill sky-high, way above Master...the effect of Heroism and Bless more than exceeded my expectations - they were unstoppable.
I don't know why, but a magic-party was kind of dissapointment for me in this game - which is even more weird because I prefer magic to might.
The next time I will use a Druid instead of a Knight, but no magic for him whatsoever - I will pump everything into dodge, unarmed and bb + the gloves that gives you +10 to Dodge and Unarmed - pure fighter.