Gavindale: In ths game, is there much in the way of griding for character development? Do encountered enemies respawn? Is this gamne story-driven, or is the story and world open for exploration?
I would not say there's much grinding. I've never found it so, at least. Respawning is not a simple yes-or-no answer. In dungeon locations there is no respawning, but you can always walk in the countryside and run into random encounters. The forest never runs out of wolves, in other words.
While the combat system is rather bad, it does have the virtue of being fast and easy so you don't have to spend a lot of time agonizing over it. Arcanum is much more story- and setting- driven than combat-driven.
A simple recommendation I usually make is to play with turn-based mode turned on, with your finger on the "start combat" key (which is "R" iirc, but I may not remember correctly). You see, combat mode doesn't activate until an enemy gets within melee range, which can be really annoying if you like ranged weapons. You should start combat manually as soon as you see any hostiles. That makes it a lot more tolerable.