The first time I played I had trouble in Kvatch too, it's easier when you know where to go and such and it may in fact be quite hard at level one. The creautures level with you but they only become harder at certain levels, like at level four you will start to see clan fear runts, which are not near so bad as the very annoying clanfear that you start to meet around level 12. So alot of the enemies don't get harder at each level, they just change to a new form at specific levels although at higher levels you meet opponents that get harder each time you level.
So, like I said it might be difficult in Oblivion gates at level one, but some things to keep in mind. Use your healing spell a lot, or rest between fights (use the left little button to bring up the rest menu, one hour will do). Hold up your shield and when you get hit swipe your sword twice quickly and then get your shield back up (unless you stagger him, meaning he falls back a step, then hit him quickly two more times). Avoid the fireballs as best you can. Repair your armor (but you may not have any repair hammers).
Since it's easy to return to the gate I would suggest you fast travel to Chorrol, join the mages guild, pick up all the alchemy equipment and sell it back to the alchemy guy (barter so you sell them for 33 or 344 apiece) and then buy some spells, most importantly bound dagger (assuming conjuration isn't a mojor skill) and cast that spell over and over (hit the square button to unequip the dagger so you can cast it again) until you get your conjuration up to 25 and then buy the summon Skeleton spell, which will be a great ally in the Oblivion gate. You don't need to buy equipment, but go to the store near the south gate with the lizard lady and buy repair hammers from her for about 16 or 17 each(she's cheaper than the weapon store), buy 10 if you have the cash.
If you're able to close the Oblivion gate (it's hard the first time and you really do feel like a hero, if you play from the beginninglater you won't feel so special to have closed it) save just before taking the magical stone and reload until you getone with fireshield,frost shield or shock shield since these can help your elemental resistance and more imprtantly your armor class. Afteryou'll get to fight along side guardsmen, remember to loot there bodies especially the legion warriors since they have decent armor.
Lastly, going to Kill Umbra before doing any quests can be quite helpful since she has good armor and the most damaging sword in the game (it'll be low at first but it gets better as you level up). To do so, go to the south west of the Imperial city along the ring road and find a place called Vindasel (sp?) and you'll want to put the difficulty slider to the minimum here for two reasons. First, she'll kick your ass if you don't and second and more importantly, I've found the game crashes alot in that place and when fighting Umbra so you want to get in and out fast and save often.
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