Ok...my character is incredibly weak. I just beat the first little town and became the dragon for a few and met Damien. I get gained up on by 3 skeletons and am immediately killed...anyway past this?
Try a different direction. When you first get access to the rest of Broken Valley the level 8 skeletons are a little tough in groups (especially since you are probably only level 6 or 7). There are lower level goblins you can take out first (west and north up a mountain path, or south east along the mountain, north of the trail that leads past Lovis' tower).