There are only three quests that you must complete to finish the game. The water chip is the first one. You find out about the other two after you find the water chip. (What, you didn't think it would be that easy, did you?)
There are dozens of other quests in the game that you can do or ignore at your pleasure. There are three things that the quests provide:
1. The experience points and loot the quests reward you with make your character more powerful, and therefore, more fun to play.
2. Some of the quests (and / or talking to folks) give you clues about how to solve the three main quests.
3. Your actions in many of the quests will determine what sort of cut scenes you see after you complete the game. Who gets a happy ending, who sucks it.
3. The quests give you something to do with your time (and let you see the world in action).
You can kill everyone you meet, loot their bodies, and get XP for their deaths. But overall, I think you get a bit more experience from helping people than killing everything that moves.
Towards the end of the game, you should be swimming in loot, so there's no real need to grind the entire population of the wastes under your boot to collect a few bullets and a handful of bottle caps.
What I usually do is wait until after I've fully explored an area before I read the walkthrough. I'm just checking to see if I missed anything important / interesting / amusing / entertaining. I'm usually able to figure out 90% of what's going on my own, but it's sometimes nice to go back and pick up the cool loot hidden in some container you forgot to check.
There's only one or two places where the game throws such a curve that you won't figure it out without the walkthrough.
Post edited October 30, 2008 by mcfeher