I've also been looking into using LUA for scripting Castle Adventure,
I've found a delphi header on the net and got a simple script editor and executor to work...
It takes a string, compiles it into a function then calls the function, prints the result out to Delphi.

But there are some things that I'm still not sure on, such as how to get Delphi to call a different function from the last compiled one...
I looked at the example in the reference manual and they were doing very weird stuff with the LUA stack :?: and they basically said Dont do it this way, look at other examples that do it better...

I've made my LUA editor avaliable on my website for you here:
http://www.sulaco.co.za/nitrogen/LUA.zip