EDIT: copied plump raws from different save and it fixed, but sadly the graphics are locked to whatever tileset you use, and trying to change it says it would corrupt the save
I may be able to help with this... that error happens when the world is genned on vanilla and copied to LNP which is already set to use a tileset. It produces really weird glitchy graphics, and also slightly increases instability. If you copy over the raws with graphics from a correctly-configured game for the graphics set you want to use, it corrects the issue.
I'm afraid that doesn't help, as I generated it from the lastest LNP contained and started DF (with Phoebus tiles from the start and all). I DID export legends from that DF as well, but I doubt that would screw up the world gen parameters. Thus, I'm afraid the problem you solved happened to be bypassed by my generation from scratch from within the LNP. I appreciate the help, though.
@Trollhammaren: I'm usually rather dependent on candy, since my embarks are metal less in metal less worlds. Goblinite supplies some, but I won't trade for metal apart from a few bars to cover moods. In this embark there is no need for candy, but if I wanted to match evil from above with evil from below I'd have to resort to the miner sacrificial method (unless the thinnest SMR point is a single level thick), and I dislike sacrificing my dorfs. If you use a 2*2 embark it would be stupid to rely on candy, since it's "guaranteed" only on 3*3 and larger, but if you don't care it obviously doesn't matter.
I'm fairly sure a single cavern is not a sufficient criterion to lose candy, or there'd be more knowledge about it.
Compared to you, I'm basically cheating, since a 3*3 embark allows me to keep my fortress outside of the evil area, so I only have to deal with what comes from it, and they're not exactly racing towards the fortress. I built most of the roof of my recessed courtyard with a couple of undead rodents ambling about in the periphery. It's when undead flying stuff appears I find it better to be indoors, as it's far too much work to try to keep track of them.
When it comes to booze I strive for the widest selection possible, and then grow each plant for one season (including plump helmets) on single tile plots. I skipped mead on this embark, though, as I don't like the uncontrolled rushing out of the farmer to get new bees all the time. I also buy one lot of each of the fruits the elves bring, but I don't pick fruits as that results in an unrestrained explosive growth of the booze stockpile. I'm still contemplating building an orchard for future use, though.
@CaptainLambcake: Yes, I know. The head wool/skin is (possibly just almost) unkillable. I did get a rather good tip the last time I tried an reanimating embark, though: Surround your butcher, tanner, and farmer's workshops with cage traps. There's a decent chance the damned thing gets caught in one, and your civilians can often escape harm by dodging into traps (there's some work to get them out again, but at least it can save their lives). In a way it's even worse when you kill a skin and bits of it gets stuck in the workshop so you have to deconstruct and reconstruct it again, and while that is being done the head part reanimates... I resorted to DFHack "exterminate him/her" for head parts, as I consider them too bugged. When butchering is subject to reanimation I station the militia in the processing area, and only butcher one creature at a time, waiting for all processing to be done before starting on the next one. You can also use the splatter method, i.e. drop whatever you're butchering from a sufficient height to let it explode into parts, let those reanimate at the bottom, and then use suitable method to rekill them. The splattering process provides the multiple skins killing a reanimated skin does, but with less risk (rekilled butchery remains aren't reanimated again).