cmdr_flashheart: Thanks for the answers! I am playing just on Normal, but I had an encounter with this one group in the mountains that was seriously tough! So, I was thinking on going down to Easy, but since the description of who you are playing as changes depending on the difficulty level, I was worried that I might change the storytelling; I ended up reloading to a different save, and took another route :p
Apart from that one group, all other fights on Normal have been manageable, thus far, so I don't know what that was about! Thanks again, though, good to know I don't have to worry about that in the future.
Could be you encountered the fight before you had some barricades or traps available? Having those available makes fights much easier, especially those mountain ones since you can block off the enemy. Or did that sneaky warrior catch you off guard (the one that comes at you from your left flank - I didn't notice him at first!).
That being said I think the mountain guys are supposed to be kind of tough - but there are MUCH tougher fights ahead (I won't spoil them though).
Also as MadOverlord said the game has so many branching storylines that it accounts for practically everything. Short of having a major mutiny or getting everyone slaughtered, you can lose every single battle and the game still goes on.
MadOverlord: I don't think there's a technical time limit, but your resources get strained after a certain point. It's not like a typical RPG where you can just grind treasure, then buy from a trader who has an unlimited supply of goods.
Actually if you really wanted to, you could go around collecting healing plants (they respawn eventually) and sell them to the merchants. IMO that's a pretty lame way to play though, and you shouldn't need to do it, even if you want to explore the whole map. Besides, there are no experience points to be had from grinding.
How much your resources get strained (and how soon) depend heavily on how many points you've put into Survival and how many hunters you have. Food can be a big expense if not managed carefully. That said, fishing when you can and killing every wild boar you see should help a lot, and on Normal there should be plenty of the latter running around.
Just be aware that 95% in guarding does mean you WILL have guarding failures 5% of the time, so the longer you roam around the greater the chance of a guard failure triggering. ;)