Can't really help without actually being there, but you might try going south (along the coast?) until you get to the river and follow it back to Balmora. Or continue along the coast to Seyda Neen (the mushrooms are easy to come by there).
When you do get back I would strongly suggest investing in some teleportation spells and/or scrolls. Spells such as mark and recall (available at the Balmora temple) or spells/scrolls of Almsivi and Divine Intervention.
You might also check to be sure you're fighting with a weapon you are "skillful" with.