This is not a guide, just a report; I want to dispel the notion that Unarmed combat doesn't work well in this game. I just finished the game at level 34 with an unarmed warrior. It was a little tough in the very beginning, before level 10, and a little bit at level 20 (due to low magic resistance against groups of imp mages), but really it is completely feasible and fun. Taking on mobs of demons and evil doers with nothing more than bare fists and decimating them all -- lots of fun.
I have read on this forum that Unarmed is difficult, and doesn't work at higher levels due to an inability to do enough damage. It is not true. Trash enemies can often be taken out in 2 blows.
Here are the rules my character followed:
1. No ranged weapons, no melee weapons, no magic damage or healing spells at any time from start to finish. I did use my creature at times, and I carried a shield on my back.
Skills
No points were invested in any Priest, Mage, Ranger or Dragon Slayer skills other than 12 in Unarmed Expertise and 1 to Mana Leech. I did wear an item that gave me 2 points in evade. All points went into Warrior Skills and Unarmed Expertise only.
Initially I used Rush Attack with 1-2 points. At the end game I put 5 points in it because I had a bunch of extra skill points.
My primary skills were Whirlwind and Jump Attack. I took Whirlwind to 11 points for the decreased cooldown and maxed Jump Attack. Bleed and Life Leech received as many points as my level allowed. One point to Regenerate. No other Warrior Skills received any points. I might try Battle Rage next time.
Attribute Points
Initially I took Vitality to 30 and maxed Strength. In the beginning I think I probably put a couple in Intelligence and Dex only for armor requirements. T the end I put a bunch more in Vitality because I had a lot of spare unused points.
At Level 34, stripped of all equipment attributes are:
Vitality -- 45
Spirit -- 2
Strength -- 100
Dex -- 4
Intelligence -- 4
Damage
At Level 34, stripped of all equipment damage = 185-225
Fully equipped damage = 533-573
Resistance
At Level 34, stripped of all equipment
melee resistance = 35.68
magic resistance = 2.17
ranged resistance = 2.17
Fully equipped
melee resistance = 61.87
magic resistance = 62.34
ranged resistance = 47.86
I used a lot of melee damage charms and enchanted armor with magical and ranged resistance. I wore Ulthring's armor. The vendor in Aleroth is your best friend when it comes to charms and jewelry. My shield was level 19--never did find a much better one, and I had a couple of good charms in it.