Save your game frequently. Don't just overwite an existing save, either: give each save a different name to keep your options open.
In the early part of the game it pays to practice to improve any of your abilities such as climbing (climb rocks, tree, walls...) anything to get your points higher.
Practice throwing rocks at anything, but if you have bought some daggers from the shop use the target south of the town for practice so that you can get them back!
To improve your fighting skills, Goblins can always be found in their camp and are not too difficult to kill. Each time you enter their camp you will be attacked by one more Goblin than on your previous visit. Goblin-killing can also be quite profitable, because searching a body usually results in finding some silver.
Staying alive is helped considerably if you can afford to buy Healing Potions and Vigor Potions from the Healer. You can buy them from Zara in the town, but they are more expensive.
Fairly easy ways of getting money early in the adventure include collecting Magic Mushrooms from the Fairy Ring and collecting flowers from Erana's Peace to sell to the Healer. She will buy three lots of these, so PICK three times to save on journeys.
You can earn five silvers for cleaning out the stables in the Castle, BUT be careful not to start too late in the afternoon. If it is sunset before you get back into town you could be in trouble.
In town there's no problem if you can afford to pay the Inn-keeper for a bed, but outside town there are only three safe places to get your essential kip. Erana's Peace is safe and you also get all your Health, Vigor, Magic Points, etc renewed. By the Dryad's tree is safe, if you can get to it.
Finally the hermit 'Enry will put you up for a price of 1 Food, though unless you can climb you won't be able to get up to his cave.
Contrary to what Bruno by the town gate may tell you, find the Thief's Guild by going up to the Goon in the Tavern and saying "Schweinhund". In the Guild you can 'fence' any property you have stolen after picking the locks to the Sheriff's house and the Old Lady's House.
If you can climb, or if you have Magic with the Fetch spell, you can find the Gold Ring lost by the Healer in the nest in the tree outside her house.
When you have built up your abilities and can defeat the Ogre, enter the cave of the Bear. He will let you pass if you give him food. You can then enter the cave of the kobold. He is very difficult to kill, but if you throw about 80 rocks at him you will succeed. Remember, before you enter the Bear's cave PICK UP ROCKS. Repeat this until you can carry no more. You will almost certainly run out of rocks during your fight, but just come out again and get some more before returning to THROW ROCK AT KOBOLD. When he dies, pick up the key that he had been wearing, then SEARCH THE CAVE. You will find a chest that contains money. Return to the Bear and use the kobold's key on a manacle on the Bear's leg. Stand by for a surprise!
Another quest which requires great fighting ability before attempting starts with a visit to the Dryad. After getting a Spirea seed for the Dryad, you are given a list of ingredients to obtain and take to the Healer. She will then make a Dispel Potion for you. You must then go to the valley where the Archers are. Run to the logs and jump over. You then fight a series of Brigands with no chance to pause and restore your health by drinking any potions, so you must be fit before entering the valley. When you defeat the Brigands you come to a gate guarded by a Minotaur. Kill him, search him and kick the gate open. You now enter the barracks. Go left round the blockades, then go across the right-hand plank over the chasm. Step over the trip-wire between the barriers at the back of the room. This takes you to the Brigands' meeting room. LOCK THE DOOR and go to the top right and GET CHAIR. As soon as the chair is in place, MOVE CANDELABRA. Three Brigands will now be behind the table, so move in front of the table opposite the right-hand chair. Wait - the Brigands will now retrace their steps, and when the first of them comes to the left-hand end of the table type CLIMB ON TABLE USE ROPE. After the action, don't hang about! Open the door at the back of the room and go out. This will take you to a very strange room (ME's room) which you will eventually have to leave via the left-hand door on the end wall It's a lot of fun, but I suggest you save on entering and during this room. The next room is the Brigand Leader's room. THROW DISPEL POTION on the Leader and stand by for another surprise!
Another quest can be completed from this point if you have already opened the gate to Baba Yaga's hut. Take the healing potions from the Leader's desk and also the Mirror. Go to the hut and when Baba Yaga enters, HOLD UP MIRROR. Exit Baba Yaga!
The gate to Baba Yaga's hut is opened by the Skull in return for the Glowing Gem - I hope you haven't sold it - which in turn you get from the Frost Giant for a price of about 70 apples, which you get from the shop.