Yes the west undead are good to go for if you are careful, make sure you have a henchman (or henchwoman) if you are going though.
At first this game confused me! Being 'numbed' by years of World of Warcraft and Diablo I thougt it was going to be all about killing things quickly, how wrong I was!
What I did not realise is how much actual roleplaying there is in the game even early on. This is how roleplaying games should be (if you can even call WOW a 'role-playing' game at all). I think D:OS is about as close to Baldur's Gate and Ultima as I have been in many years of gaming.
I realised after a few days that there is a lot of experience to be earnt from just completing tasks around the village and even just talking to your party members sometimes. For example speaking to the Legion Commander and being asked to explore the murder scene gained me several thousand experience points without fighting a thing! Subsequently, I was 5th level before I explored further afield.
Basically, well worth exploring the town very thoroughly before venturing out.
