The bare-knuckle part is a bad idea unless you're having monks duel. Hand-to-hand damage at level 1 for a non-monk is a max hit of 2. With running around to avoid attacks and the low skills at level 1, neither character would ever be able to kill the other one; 1hp regen a tick would make up for any damage dealt. If you've ever died on a low level character and tried meleeing crap until you got a weapon, you know how hard it is to accumulate any damage.
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