If you're finding the combat too difficult, you may not have properly prepared your troops.
When u begin, do not make the mistake of heading north to pick up the 2 spells in Tyr-Sog because you'll have to kill the Sorcerer in the Trap. This combat should ONLY be done when you're ready to break an Elf Crossbow and/or improve everyone's crossbow skill.
Head south and fight the lone enemy in LaMut. DO NOT rush in, 3 against 1, and kill him.
You want him to attack one of you're troops until he gets tired and decides to flee. Be sure to check everyone's Defensive Skill box so the skill can increase as fast as possible. When the enemy flees, have Owyn cast Despair Thy Eyes and Invitation to keep him from escaping.
As Locklear will be leaving after Chapter 1, and will reappear in Chapter 5 to face some very touch combats, you'll want to get his Melee skill up first.
Melee increases when you hit someone, regardless of how much damage is inflicted. This is why you want Locklear and Gorath to have 2 weapons, a good weapon and a really horrible weapon. So unless you're in a difficult fight and need your best weapon, go ahead and use your worst weapon, so you can get as many hits as possible before the enemy dies. You can take it even further. When someone's health (not stamina) drops, their skills and their strength decreases, so your hits will not inflict as much damage as normal. So when someone gets hurt, think carefully about whether you want Owyn to cast a Gift of Sung spell. When Owyn gets the spell Grief of a thousand nights, he'll be able to freeze the enemy, so one of the troops can attack safely with no stamina and little health (19 or 29 points of health), and be able to inflicts lots of hits. But until then, you only have Dispel and Invitation to work with. So don't heal Locklear or Gorath with the Gift of Sung spell, everytime they get hit. You may want them to get hurt, so when the enemy flees, you can inflict more hits. Save the game before each combat, just incase. Also, you can damage their health before any combat by starving them. Just be sure to give them food BEFORE the combat starts.
Note: Only use the Thrust swing, as it has more accuracy and inflicts LESS damage.
Also you start with an 18% Standard Armor. You'll want to get this reduced to 10%, so give it to Locklear, and make sure the enemy attacks him, as 3-5 hits should bring it down to 10%. Once that happens, you'll use that down the road for Armorcraft skills, so don't use it in combat again. Go with your best armor and worst weapons unless it's a tough fight and/or you're outnumbered.
The second combat is in Zun and only has 2 enemies. Let Gorath and Locklear defend until each enemy flees. Use the Dispel spell on Gorath's opponent, as you want Locklear's guy to flee first (typically when their stamina gets low). Locklear can also kill the other guy, AFTER he starts to flee.
The next combat, just before Killian's Temple, has 3 enemy, and can be a difficult fight (3 on 3). They'll try to go after Owyn, so you will need to kill whoever goes after him. Again, keep trying to get Locklear and Gorath's Defensive skills up, and keep working on increasing Locklear's Melee skill.
REMEMBER not to repair Locklear and Gorath's poor weapons. As you don't have a hammer, use the enemy's if their armor is better.
The last combat is 2 enemies in Hawk's Hollow. This is an easy fight, so work on those defensive skills, and Locklear's melee.
Go to the Dimwood NW, use the Trap to max out Owyn's Casting skill.
Loot the Farrier chest for the Spell "Grief of a Thousand Nights". Go to the Dimwood South and grab the 8% Goblin Sticker in the stump. You shouldn't have any trouble avoiding combats in these areas.
Sell, buy, repair and sell 8% Goblin Sticker at Yabon. You'll get Locklear's and Gorath's Weaponcraft skills very high, and make around $10,000.
Now you can buy some Elf Armor, and then go to LaMut to get Elf crossbows, bowstrings, quarrels, aventurine.
Now you're adequately prepared to go North. Keep working on your skills, and be sure and break one of the Elf crossbows in the Trap/Sorcerer combat. I suggest that after reaching Loriel, you teleport to the Killian's Temple, head down to Sarth for spells, teleport from Sung to Loriel, head to Wolfram and buy weapons and armor at the Arms of Dala shop. Teleport at the Tith temple to Sung. Fight your way to Malac's Crossing, get the cheapest #3 Blessing in the game at the Chapel of Ishap, for your best armor and weapons. Also get your WORST weapons blessed, so their accuracy can be improved. Now you can teleport to the Temple of Killian, and go back to the Dimwood NW. Fight Ockie's 2 scorpians (endless combat ONLY in Chapter 1). Max out Locklear, Gorath, and Owyn's Melee skills. Max out Locklear and Gorath's defensive skills. Use the Brak Nurr combat in the Mac Mordain to max out Owyn's Defensive skills.
By this time your melee, defense, crossbow, and casting skills are maxed out or extremely high. Weaponcraft should also be high. You should have lots of money, the best weapons, the best armor, and you can also max out your Armorcraft skills at LaMut selling, buying, repairing, and selling that horrible 10% Armor you got at the start of the game.