It sounds like you did not loot very much in town. There are some leggings in the house to the north, where you find the magic mirror.
Meat and bread restore hit points, and can be used as a cheaper alternative for potions for awhile (there is a limit to how frequently you can eat, though).
A bow and hit-and-run tactics can help, especially at the start.
You can leave Aleroth and level up a bit on the orcs outside, though I would not go too far south.

Early Starting Tips

Early Starter Tips (NON-Spoiler Version)


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