Hey GoodOldJack,
perhaps Ican help you a little.
GoodOldJack: I abandoned this game a while back due to losing in a fight against a goblin warrior that was supposed to be possessed of a spirit of a demon or something.
That sounds like you are talking about the Goblin Khan, who indeed is possessed by the Daeva Tawrich. If so:
If you leave the Goblin Village area using the south west exit, you will find an area called "Bounty Hunter Camp". There, you will find a group of four feralkin warriors. Their commander, Raylark, owns a two-handed weapon called The Everlasting. You can buy this weapon from him (10000 gold) or kill him for it (careful, he and his group are very strong). This weapon makes fighting all goblins much easier and might healp you in defeating the Khan.
GoodOldJack: I was torn on whether to help the girl destroy the goblins and what not. I got to a point where I couldn't advance further into the game. Can anyone give any advice as to what to do to make it through the game with these decisions?
This however sounds more like you are talking about the goblin soldier Grumdjum and the River Dryad, which you meet a little earlier in game. Are you still at that point of the game or have you already decided to help the dryad and then proceeded to the goblin village to face the Khan?
But in any case: Fighting the goblins is not necessary for advancing further in the main quest. The Goblins are just part of many interesting side quests, but the main quest that leads you away from Barcelona will only continue/start if you have joined one of the major factions in Barcelona (Knights Templar, Inquisition, Wielders).
GoodOldJack: I usually like to make a fighter with high constitution and go with one handed weapons or unarmed. Are there any other skills I should master in in this game that will help with advancing/making the game much easier or bearable. I was thinking maybe I could master in unarmed, lock picking to get into places, and maybe speech. The problem is I don't know if lion heart is a good game with regards to that aspect of speech.
Sounds OK, though it does not really make sense to skill both one handed and unarmed. Eventually you will have to decide for one of these, thus it is better to skill only one of them. I should however note that the final areas of the game are very difficult for all melee characters.
The first two thirds of the game are full of situations where you can use your talking skill, thus skilling it is certainly sensible. If your skill is high enough, you can even use it on some of the final areas. However, most of the third part of the game is unfortunately pure hack and slay, so you can't only focus on talking.
Another note: All thief skills don't need to be skilled as high as the other skills. While fighting and magic skills you focus on should be raised to 250 or higher if possible, 150-180 is enough by far for all thief skills (except sneak maybe, didn't test that yet)
GoodOldJack: Can anyone that has beaten the game give some advice as to who to join?
Choose your main faction by preference. The effects on gameplay are minimal.
Additionally, you can always join the Knights Of Saladin and either the Thieves or the Beggars in the Sewers. Here, the Beggars' quests are more lucrative. But you should choose these by preference as well.
Hope I could help you! ;)