Quoting magiclyDelicious,
wow, thanks for all of the great ideas. I looked up Eschalon and really like what I see! It seems to have that ultima online type of feel to it, I just hope the turn based combat is involved. Should I do book 1 before 2, or just jump right into 2 (my preference).
The story of 1 is summarised in II, but apart from the different plot the only changes I believe are some optional difficulty tweaks - you can have items degrade over time, require food and drink to survive and similar.
You might also want to check out the Spiderweb Software series of RPG's, they're turn based too. Avernum is entirely turn and party based, Geneforge has a rather unique background and is real time with turn based battles. Avernum 5 and Geneforge 4 are currently on sale at Gamer's Gate (it's the last day though so hurry) and well worth it imho.
If that doesnt scratch the itch, I think I will check out Kings Bounty. I really did like HOMM5, but the campaign just felt kind of flat. .
You might want to try Armoured Princess rather than The Legend, unless you can get the gold edition cheap. There's some minor balance issues in The Legend that were smoothed over with AP, like only having a finite number of recruitable troops so you could end up playing yourself into a no win situation. They're great games though.
On an RTS front you might want to look into Majesty 2. It's a remake of the old Majesty game which has you building a town and setting bounties on various things in order to encourge the local heroes to get off their fat backsides and do something. It's fun, but the remake has some ridiculous difficulty spikes in it.