Like Lord Twig, I used to use the RQ3 method with no problems. I7ve even tried having damage come off fatigue as well as HP (it worked and made some sense).
But, most of the time in RQ3, since fights tended to be short and bloody, I could just ignore fatigue for most fights. I would see how much FP the characters had and that gave me a decent margin when fatigue didn't matter. Ingore a 2 or 3% penalty was no biggie.
Fatigue only really came into play when people were heavly encumbers, like one guy who was wearing doublemail, and padding under a suit of plate (he started off at negative fatigue!), but he was dragon hunting, so it sort of a one off event.
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