Level 1 can be tough, oddly enough. Look for Decaying Skeletons and kill them, they'll drop weapons and cloth armor you can use and bone chips you can sell to players. Before you attack any monster, get in the habit of pressing "c" to consider it. That will give you an indication of whether or not you can kill it. If it's blue, (or white at level 1) you should be able to. If it's yellow or red, it'll probably kill you.
Level one is quick. You just need to kill 10-11 monsters to get to level 2, and then they'll become significantly easier.
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