Thanks for the tips. I was finally able to beat the Shaman using normal arrows while my DK used splitting arrows. Unfortunately all the imps in the village are dead now so I will not be able to complete all the quests there. I hope the hermit is still in the spider forest so I can get Hammer Level 5.
I had a question on holy water. How do you use it? I know that the hermit has a bowl that you can use but are you supposed to right click on it? I have holy water right now (but not the bowl yet) and am not sure how to use it and what is the benefit of using it.
Also, have you tried any traps yet to see if they are of any use?