The "V" editor marks are fade-to/from-black (V = fade to black, inverted V = fade from black), while the diagonal lines are for dissolves.
So, the wide shot of the castle gate after Tack is captured should have a fade from black instead of a hard cut. The shot of the gate after the fade-to-black on Zig-Zag's face (after "go with princess yum-yum") should also be a fade from black. There should be dissolves between the slow-motion wounded soldier, the blood spurts, and then King Nod. The shot of Tack forming Yum-Yum's face in the string should have a fade from black instead of a hard cut.
Just a few examples.
Also, I know it's a compromise due to what's available, but would it be possible to fill in the dissolves during the flyover with the pencils-only footage? The dissolves to the One-Eyes really harm the impact of the march and battle later. It's just as important as cutting to storyboards to hide Tack's voice in some parts.
I'll be sending you a ton of music, but here's a piece you might find suitable to use as a theme for the thief:
http://ctufilms.googlepages.com/04AllegroPesante.mp3 (from Vaughan Williams' 9th symphony)
You might want to do a remix to just get the really good parts.