I guess you found Janus...
The game does start to get easier as it progresses. However, you can choose a handicap, if you wish (avoid certain equipment, stop distributing stat or skill points, etc). I started collecting charms to use when I had better equipment, but then decided not to use them. I found a sword with Frost on it (similar to the Freeze spell, but ignores the target's resistance, so it always works), but it made fights so boring I stopped using it within a minute.
If you have not already done so, you can also check the game options within DD, and change the difficulty from normal to hard.
The problem with games where the enemies scale directly with your level is that if you have a problem with a particular opponent or situation, you can not just avoid that area until you are stronger.
If you are not sure where you picked the flowers up, they may be from the castle. When Janus asks you to pick flowers for Leila, there are several there, but she only takes one.
There are flowers near the talking tree in the Dark Forest that the alchemist wants, along with a tree branch needed for the Corinna's summoning ritual in Verdistis. You need the associated quest to find the item, though.
To set a hotkey for potions, you should just have to open the potion menu by clicking on the potion icon in the interface at the bottom of the screen, hover the mouse cursor over a potion icon (minor restoration potions, for example) and press one of the function keys (F1-F9,F11,F12 : IIRC F10 can not be assigned). This should work the same as assigning hotkeys to skills or weapons.
Do you perhaps have a keyboard with extra abilities for the function keys? If so, it may default to enabling these alternate hotkeys, and need to be switched to standard mode to have the keys behave like regular function keys.
Tutorial-Changing F1-F12 hotkeys to different keysWhere are you now, exactly? Are you on the first level where you escape and get your stuff back, or the next level?
Help! Can't find Gyrion... Iona's dungeon maps
The game has multiple areas / cellars / dungeon levels on different 'maps'. Usually it only displays what you are suppose to see at that location, but sometimes you can see monsters on screen or the mini-map from areas close to where you are. I ran into a glitch in a game once, and got this
screen shot of the map (30KB) showing several dungeons and sewers south of Rivertown, which normally are blacked out when not in each area.
Also, it is possible some areas were changed before release, leaving creatures stranded outside of the play area.
It sounds like you may have gotten through a wall somehow (a glitch in the pathfinding, maybe). If that is the case, and you do not have a recent save you can reload, it is possible to change your character's position.
Teleporting Anywhere, via hex editorThere can sometimes be a small gap in the north west corner when two walls meet, but if present it is only large enough to toss a teleporter stone through (which of course you do not have now).