You don't have a recent save you can reload? I did the same thing the first time I played, but had saved before entering the shop. Actually that worked out a little better, because the second time I didn't follow him right away, but did some looting after he entered his other room.
Have you done many of the other quests in town, like curing the two sick soldiers? That quest will raise your reputation, which may be enough for George to start talking to you again. There are other quests outside Aleroth that can raise your reputation, but I'm not sure it would be worth the diversion (if you are strong enough to do the other quests, you don't need what George has to offer and have access to better merchants).
I didn't really get much from George, other than what I looted. I bought a small shield from him, but upgraded it with a found one a level or 2 into the catacombs. He may have had another 1 or 2 minor upgrades for equipment, but most what I used was found.
The dwarf Otho can repair equipment (he also gets cranky about people touching his stuff), but having at least a skill point in Repair yourself is handy so you don't have to head back to a merchant whenever your equipment gets damaged. Full durability equipment sells for more, as well. That will not matter until you get to better traders, though. In Aleroth you should be able to find more than enough broken, crappy or full durability items to sell or trade for potions or the odd equipment upgrade.
You can click and hold the mouse button down to move your character in the direction of the cursor, rather than repeatedly clicking on the ground.
Early Starter Tips (NON-Spoiler Version) 
