Gothic 3 is awesome, but I screwed up the main quest by wiping out Cape Dun shortly after the beginning of the game and forgetting to pick up a fire chalice from an Orc merchant. Whoops. Not sure if it can be cheated back into my inventory... I quit playing doing things in Mora Sul when I realized what I had done.
I found it easiest to use ranged against wilderness animals. Melee against a pack of wolves is just hell. And it's too much work trying to beat an ogre or troll in melee. Like in Risen, it's ridiculous how animals can dodge blows and even block (mine crawlers), and generally fight better than humans or Orcs.
But ranged combat is teh win... taking out the demon in the paladin fortress is very easy with ranged as well. To boost ancient knowledge, it's best to visit Varant as soon as possible. There's a lot of tablets & pillars to be read there.
Best sword I forged was the ruby sword, I think. I never found the flaming sword blueprint that can supposedly bought somewhere very early. Heck, I should probably reinstall the game sometime.