Thanks for the response. I guess the folks at Larian must have gotten a lot of complaints about early difficulty and overcompensated somewhat.
Anyway, the +40 magic weapon was literally the first weapon I found and I went from doing 2-4 dmg with the training sword to doing 50+ damage. I thought it rather odd that my first real weapon was more powerful than the lvl 15 requirement weapons that come as a bonus with the steam edition.
I've also noticed a variety of +20, and +30 dmg weapons for sale at the smith. I suppose I will try not using weapons with silly bonuses in order to keep the game challenging. Time to restart I guess...