So since I picked up oblivion in a recent steam sale, and wanted to get back into it (now that I have a PC that can handle it + some nice mods), I took a look around for gameplay changers, since the standard levelling was one of THE points that made me dislike oblivion over morrowind.
I quickly saw that Oscuro′s Oblivion Overhaul seemed to be the best mod to get, and went and installed that, along with a few graphical tweaks (like OBGE, RAEVWD etc).

The one problem though is, the game is VERY challenging, to the point that I cant really do anything at all. Which creates the following issue: the starter mobs almost mop the floor with me, without my trusty flare spell, Id be without a chance (they do about 5x as much melee damage as I do with my iron longsword). For reference, im playing a dark elf spellblade setup, which I rather enjoy as a concept.

Now what im looking for is some sort of advice how to start out and get myself a bit stronger, so I at least can win a fight without /always/ having to pop a health potion mid-fight. I cant really buy any notable spell upgrades yet, and im already in a full suit of iron armor, anything else I cant afford yet (steel isnt an upgrade at my low armor skill either, since its the same protection, just heavier). If anyone has some good starter advice to get a bit of a footing in OOO and gain a few skills, Id much appreciate it. I like the concept of a challenging and rewarding game, just right now it feels like im a bit stuck, since even Vilverin is tough as hell for me, I can handle one enemy at a time (using a heal pot mid fight), but another WILL likely be the end of me.

Vilverin shouldn't be all that tough I breezed through it even with low starter HP, maybe lower the difficulty a bit? And be prepared to run like the wind, you will frequently encounter situations where you will certainly die (I ran into an ogre in some ayleid ruin, btw stay away from ayleid ruins) Hope that helps a bit.

I've played with OOO almost since the Oblivion has been released. Here are some tips:

1. Generally speaking the dungeons get harder the deeper you go. So with a low level character I'd just stick to the first zones for a while. Just give up the idea of clearing out a complete dungeon until your character is stronger.

2. Dungeons around the Imperial City tend to be easier than those further away and in the wilderness.

3. Good starter dungeons for building up characters and getting loot are Fatback Cave (first zone and outside), Fanacasecul (near the main Imperial City Bridge), and Fort Virtue (just down the road from Fanacasecul).

4. Alchemy can be a huge help. Recommend focusing on that.

5. Stay away from some enemies at low levels. Like Amazons for example. If you see them, just run. In fact running away and invisibility is great for a low level character.

Some more hints along with spoilers here. Warning, some spoilers:

http://devnull.sweetdanger.net/ooospoilers.html

[EDIT]NINJAD![/EDIT]



Heres some little tips that I've picked up from my own experience and listening to others answer this question:

1) Pick your fights. For example, Vilvirin is easy until you get to the bottom level - then it pumps up a couple of notches and straight from the sewers you might find it difficult, nigh on impossible. So, mow through the bandits but if you start to see Spectrals (like ghost people/wolves) then turn tail and run. You can always come back later.

2) The caves around the Imperial city are usually beginner friendly (with a few exceptions - so, go into a cave and test it out, if you see scantily clad women then its time to skidaddle).

3) Go to the Imperial City - visit the Discount Spell shop and buy some Hard/Very Hard Unlock scrolls. OOO adds a tonne of new chests to dungeons but a lot are locked up to the max. Its well worth the investment.

4) Most importantly, if the game is so hard its no longer fun - turn down the difficulty slider. Theres nothing wrong with it, mine goes up and down like a transvestite in Amsterdam.

Thanks a lot for that advice. Im going to try a few of these things, and maybe also drop the difficulty a little (now I feel stupid for forgetting that there was one actually <.< )

Good point. Not just because of the loot, but many of the chests are booby trapped. You can survive some of the traps but there are occasional chests that will blast you with extreme shock that will instantly kill many or most characters.

So it's also worth getting some detect trap spells. Leyawiin Mages guild is a great place for that. If you're at a low level, but best way to get from the Imperial City to Leyawiin might be to swim (that will also build up athletics) or water walk (which could build up alteration).