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A monster's level is equivalent to it's Hit Dice...
Basically you add up HD to equal the party's level and take into account things like if you need special weapons to hit them or if they have lower hit points, AC, special abilities.....
Basically it's kind of a crap-shoot at times and experience is the thing that will eventually guide you, as you see combos in action.
Sorry I can't help much more but my experience in C&C is limited....
Keep checking the boards here though, we do have a few resident posters who are big fans of C&C and play frequently....perhaps they will show and impart some wisdom.
Good luck and remember this for when you screw up on encounter balance....you can fudge the rolls. ;P
I don't know about wisdom . . . .
Yes, HD is roughly equivalent to level. Fake Healer has it right.
Yes, this means that tailoring an encounter to the PCs is tough.
It means that PCs learn to run away to live to fight another day.
And if you're running a really old-school game, they'll have to run uphill. Both ways. In a blizzard. Without shoes.
That'll teach 'em to raid a kobold lair!