I know this is a bit weird, but the starter town (Fountain Head) isn't all that easy. A better way to tackle things is as follows.(1) Hire the two hirelings, Allan Bow and Fineas.
(2) As soon as you leave the Inn, head east to the Armourers shop and buy as many of the missile weapons as he has.
(3) Equip your party. IIRC, the armour, weapons, etc are in your party's backpacks, but they're not equipped. You can explore Fountain Head, but don't kick down any walls yet, and stay away from Storehouse - you'll get your beard singed. You need to be level 4 at least before you tackle that place.
(4) Head south and leave Fountain Head.
(5) Go a few steps south, and kill a few goblins, who are easy prey. Don't go too far, though, you don't want to tackle orcs just yet.
(6) Return to just outside Fountain Head, and go east, then north to the sea, and then west. You'll have to tackle one or two orcs, but with a bit of luck you should manage it - rest when necessary. You'll find a very useful well as you start to go south, but again, don't go too far yet.
(7) Return to Fountain Head to train, and make sure you have enough money to do it!
