helpo1: You can always change it, so I'd recommend you to experiment a bit. The most important are damage to player&allies, combat AI and battle size (lesser = easier; all of them). Controlling blocking and attacking direction, targeting reticle and attack direction are also important, but a bit less. Other are really just up to you (I'd leave them on default for now).
Thanks for the tips! I've been playing for a couple of hours and I still suck. Though I did manage to be the last woman standing in this regular brawl. After horurs I discovered two companions and things are going slow but okay. I'm just scared my companions will die. I hope not... So far I'm quite enjoying myself. I'm still trying to learn how to swing my sword on a horse, despite battling so much, it's still tricky. Now I'm trying to practise with a lance as well.
I'll definately be playing it a lot more. I also bought Warband which I'll try once I get bored of the original. So far it's very enjoyable.