In the game, the hero is controlled in the same manner as regular troops. If you have multiple villages, you need a Hero's mansion in the new village to change his home village (one cannot have the mighty roughing it with the common man).
After you have trained the standard unit up to hero status you are given 5 initial skill points to raise your hero above the regular troops and five different attributes to assign them to. Every time your hero levels up you receive another 5 skill points to assign. Each attribute can be raised to a maximum level of 100. While at level 0 you are able to reallocate the skill-points distribution, but once you get to level 1 your selections are permanent.
You can read more on the Hero at: http://www.gameolosophy.com/Accessories/Travian-Hero-Guides.88541