So burn the village down only to create environment that may burn down the villagers as well? Seeing as with "medievalish" means setting such a fire is not really easy to control at all, especially with ways as "path of flamable material"Barbarians enter (at night it will be quite hard to tell that the dummys are just that and will just appear a humanoid forms) then you light the fires, they will encircle the camp and burn inward thanks to the lines leading to the dummys which will burst into flame and light nearby buildings as well, burn the village down around their ears.
Against people who may just run away, seeing that nothing valuable can be probably gained right now, and it's an ambush?
They can just evacuate, if village is to be lost anyway, without fighting.
Anyway, it really all depends on how 2ed and your DM can calculate larger scale battle.
But by the universal rule - 60 men have more than a chance against 130, if they are defending, and they have better guys among them.
They "just" need to estabilish some defensive position that will negate the numerical advantage and make organized defense easier.
With a day to prepare ~60 people can dig quite a earth wall, especially with possible magical help.
Connect it with existing palisades and houses, forming places from which defenders can shoot or fight back from advantageous position.
If possible, doing something about rivers bed, to create un/hardly approachable passage, will also help - fresh swamp will be female dog to pass, especially if one can put some traps in it, hard to see in muddy water.
Any form of projectile weapons can be probably crucial in harrowing bandits trying to get trough.