Your name is familiar.

I'm really not sure how I would proceed as a Paragon. I know how I would on a Mesmer and Necromancer, there are at least two decent options to me as an Ele and I have some ideas on how to proceed as a melee physical.
When things do go bad it's important you understand why you died and try to identify what killed you. Are your heroes and henchmen all getting nuked at once? If so, are you flagging out properly?
If you are who I think you are then you were with me in a full human team to kill Forgewight yesterday and there you would have seen the importance and effectiveness of proper aggro techniques and positioning.
Sifting through my one thousand screenshots, I found these two:
http://img715.imageshack.us/img715/9...tcleared01.jpg
http://img543.imageshack.us/img543/6...tcleared02.jpg
Neither one is of a particularly good or smooth run. The first one is a screenshot of my first clear (1:17

) where I fought basically every mob (you can safely ignore several on the way to the Keeper) and I had a horrendous time getting shrine-camped by one of the mobs past the dungeon door.
The second screenshot is of a later clear - the slow time (50 minutes zzz) was due to wipes in places I really shouldn't be wiping and with DP, I spent about 10 minutes preparing for Forgewight himself.
No consumables of any type were ever used.
But some advice applicable to all of PvE when H/Hing:
Flag your heroes apart. This can be such a huge help since it prevents you from getting instantly overwhelmed - if you do nothing else, do this.
Don't invest in significantly more defense than you need.
Looking briefly over your setup, I would say you don't have enough damage - particularly in the second setup. One spirit spammer, one splinter weapon, a few minions, Mistrust and Chaos Storm.
I suggest changing the minion master for a SoGM Rit. MMs are good in general, but are questionable here (hard to keep minion count up and thery're blown up very quickly).
Your Mesmer bar needs a few changes I think. The bar my Mes has in the second picture posted is fine, but in your case; replace PI for Panic. Wastrel's Demise and Chaos Storm don't do all that much and you're going to need the prot.
But one of the bigger issues is the lack of damage you do. You have no attack skills and Flurry reduces damage.
You shouldn't need To the Limit, Dwarven Stability and Stand Your Ground. If you're getting hit you can have a hero put Prot Spirit on you and that'll stop you getting instantly killed.
That said, I don't have much experience playing paragons or H/Hing with them.
It'd probably be worth investing in a few heals on your heroes (like on the SoS Rit) - that way your henchmen healers don't get overwhelmed.
But don't worry about finding this difficult. Forgewight is a hard dungeon compared to the rest of PvE. Even compared to the rest of Slaver's; Forgewight is hard. H/Hing it in HM requires some experience and finesse and largely good builds.
There are some other threads on the issue. Jeydra has a few based on an Ele doing it and there's a Warrior H/H guide written by someone with a fairly distinct H/H style. It might be worth reading those, even if you're trying it on a Paragon.