So, after meeting up with the Uncle and heading into my first wilderness area just next to Madrigal, these brigands are kicking my butt. I can't figure out how to kill the red ones, they do way too much damage and I do barely any, even with combat upgraded enough to get slash and lunge. Any advice?

Second question, any way to replenish health or mana in this game without food and potions? Like resting? I'm super low on money and health and can't find a way to replenish

You should have a scroll / spell that does healing. Its one of the little icons top right side for magic and it will be in the list in the same way that combat attacks are listed.

Combat is tough at the start. I suggest not using the mouse to click on the actions on the right. Use your keyboard for the different attacks. Keys are QWERTY, Q is the top attack on the list and each key corresponds to the attack going down the list. You will get some armour and a cape etc once you kill one or two of the guys in red, once you have that it makes life considerably easier.

Also dont get into fighting 2 of the guys in grey and one red guy at the same time, you will die....a lot! Once the guy in red notices you run a little away and he will follow you, bear in mind that terrain can also be used to your advantage and theirs also.

A couple ideas

1) Have you set up combo attacks? Click on the combo screen button, click on the attack icon (the sword) find the desired attack, then drag it to the action list. I have only ever set up one action in each combo attack, then set it to loop (click to the right of the action in the combo screen)

2) The down arrow (not the key pad, but the actual arrow) will automatically target the nearest enemy

3) You can hit the number of the combo (not key pad, but over the regular keys) to activate it after targetting an enemy. If you set the combo up right, you should start attacking.

In this way, you don't have to keep clicking to attack. Just click once, or hit the up arrow and the desired combo. You will attack automatically and continuously (and sometimes even block/dodge)

A couple hints: This is tough, at the start. remember to run away and heal regularly. Also, different weapons are better against different enemies (read everything, talk to everybody, listen to everything to learn) Be sure your weapon is in good condition. Take advantage of the terrain (although counter-intuitive, try to get them to attack you from high up)

Search everywhere, pic up all food. You should have more than enough.

BTW, any action can be put into a combo. I usually have a non repeating healing combo and a set of non repeating buff spells combo'ed for quick use.