Hello there. I just finished the game + exps on PotD difficulty + NPCs only party + High Level Scaling, Blind (first run).
Before starting the game I spent a lot of time searching for the right difficulty for a first run: everybody said something different (too easy, too hard etc...), and my fear was to not find the right balance between a "challenging" difficulty or ending in a "cheesy" hell.
Now, given that difficulty is subjective, here is my opinion for helping people in the same situation. I'm speaking to "veteran" people (BG2 etc) who know the "basics" (tanks + caster + healer + doors + stategic position etc...) but don't like to cheese the game too much:
- Expert Mode and Iron Mode: Expert mode seems to me an artificial difficulty mod, a little extra for hardcore gamers, it doesn't add anything (fun) to the game, expecially for the first run. Perma-death on PotD is also probably impossible for a first-run blind, avoid it!
- PotD difficulty: pretty balanced after 25% of the main game. Initially the game is VERY VERY unforgiving and unbalanced without a party of six people. After that, it is the "right" difficulty. Probably on "HARD" I would be happier and less annoyed at the beginning of the game, but then extremely bored.
- High level scaling: Enable it: At the ending of the game everything is pretty easy with an optimized party, with some difficulty spike only on the "main" battles (boss, dragons etc...). It is better like this: trash mob battles are very very repetitive after a certain point.
- Full party: Completion people usually leave a zone only after they have cleaned everything: please DON'T. Game on PotD is clearly balanced for a six member party, so it is probably a good idea to make hirelings in the taverns or (better) avoid extremely hard zones until the party is set up. Quests don't expire, and just following the main story for a bit will get you soon a full party.
- Gold and Exp: Reaching the level cap (lv 16) is very easy. Gold is also pleanty (more enemies, more loot), the real problem is that after 60% of the game you do not know WHAT to buy, actually.
- NPCs party only: totally doable, also recommended story-wise for a first run. Their stats are bad, but not SO bad, and the items with +3 stat are plentiful in the game.
- Party composition: Expecially at the beginning: the more TANKs the BETTER. 4 of 6 party members MUST be able to take a hit. Enemies are everywhere
- Stats: To keep it easy: The most important stats are ACCURACY (for nuker) and DEFLECTION (for tanker). Everything else is secondary and there is time to understand the mechanics, but these two must bump as soon as possible for surviving at this difficulty. Tip: shields and enchantments are nice. Respect is also a gift.
- When to start WM1: Lv 10 / 11.
That's all for a spoiler free guide, game is awesome! Have fun