First thing:
Episode 1 is the most cruel when it comes to that. It has less weapons, and almost exclusively zombies and cultists. LOTS of cultists. Its basically the hardest when it comes to that.
Yes, they can tear you to shred, but this game expects you to use a certain level of strategies. The weapons can do a lot of miraculous things, quite a few however, does hint on your knowledge of the map. However, if you die 10 times in a row in the same spot, you need to rethink strategies, look out for secrets, or frankly, lower the difficulty setting.
The cultists react very, very quickly. However, once you're out of their sight, they wander, and if they get their back to you, will not shoot you, and you can change your approach accordingly. This is a big difference with many other AIs in those generations of games. They don't "wall hack" and always know -exactly- which side you are and immediately turn to you as if they had eyes in their back. Use this weird AI to your advantage.
The best thing if you don't know where they are, is to be very quick to fall back. Go back, and let them come to you if they can and deal with them. If they're in other spots, figure out a way to kill them without being in their sights. Because thats what this game is. You are -not- supposed to be standing in the line of fire of a cultist. They rip you to shreds. You have sufficient speed and many tools to indirectly destroy them. Use every last one of them.
Yes, this is a very difficult game. It rewards patience and intelligence.
And I'm afraid there is no mod to lower the damage. I actually looked, once, annoyed by the difficulty just like you were. But instead, I had a lot of fun trying to overcome it. This game is a challenge -> and you have everything you need and more to overcome it. Try to have fun that way!
Post edited June 02, 2013 by SFJake