I'm catching up a bit on back episodes, so I'm probably commenting on this long after it has passed from everyone else's interest.
OK, I enjoyed it. It kept my interest. I felt for the protagonist. The psychological tension was nicely built, and the ambiguity between who's the good guy and who's the bad guy.
I do share a previous poster's lack of enthusiasm for the random way the final fight turned around, but not being much of a swordfighter myself, I dunno, I suppose it could happen...
Above all, what I'd like to know is: Where's the fantasy? This is sword and sorcery, hold the sorcery. It's just a medieval-style fight story. It could have been set in modern day with modern weapons, or in the Civil War, or any conflict in any day between local warlords. The only element of fantasy that I see is the presence of the strong female warrior protagonist, which is not fantastic in and of itself, but a point of commonality with the "chicks in chain mail" fantasy sub-genre.
In short, a pretty good story as a story, but I don't see why it belongs in Podcastle.