Notes: this walkthrough is not point-and-do type. For example I don't tell you "everything" about the quests or treasures. You have to understand this and have fun exploring areas and opening chests and looking for treasure (sounds awful, I know, boring too…). I try to give you some tips on fighting tougher enemies and give you basic directions where you need to go as well as other tips. The side quests are not rich with details but I'll try to list all side quests and give some advice on more complex ones. Remember, it's the roleplaying that counts. And one more thing… if you have any questions… use the forum.

Prelude (basically killing 1hp goblins)

You're about to become a hero but first, you need to "learn" to be one. You really shouldn't have a problem getting through the Prelude so I'll keep it short. To get anywhere you have to talk to Pavel and his brother (Bim). They introduce you to game's basic controls and the situation in the outside world. They can be really annoying if you have played the game more than once. After that, go through the door and talk to Olgerd the dwarf in the next room. He will give you an item depending on your character class. You can buy and sell items to him, so consider this dwarf as your first of many shopkeepers in the game. You can skip talking to a woman in the next room (Berna I believe) because she will only help with using your map and journal. And here it is ladies and gentlemen, the training hall! Well it's not that exciting but you can show your characters personality in here. Herban will be your guide in this room and he has a bad attitude so you can tell him to shut it or you can be a good boy/girl and listen. After talking to him you either have to take the combat test or if you're a non-combatant (eg. a wizard), you can skip this part and continue to appropriate training room. Well move along move along nothing more to see here except for some monsters in cages which aren't that exciting. Down the hall there are training room for clerics, wizards, thieves and the like. You can use signs by the doors to tell you what training room you're looking at. Anyway, the only training room all classes should visit is the wizard training room. There you can get a few spells which you can hold on to or sell them. After completing the test, go to a door with a guard standing near it (end of the hall). Talk to him and go in to meet the lady! Lady Aribeth, holier than thou, your mistress for the most of the game is waiting for you. Talk to her and she will tell you that you graduated (woot!). After her speech you will be attacked. You can kill the evil bad-ass level 1 mages if you like but Aribeth will be more than happy to kick their asses.
After the battle Aribeth gives you a mission to go to Waterdhavian creatures and make sure they're alright. You also get a key to the locked door in the hall with training rooms. Don't even think about getting back to the room you started the game or checking if anyone's alive (they're all dead). You will run in into goblins and gain unnecessary experience points (trust me) if you do so. Anyway, it's your choice but don't say I didn't warn you. The goblins and skeletons you'll encounter along the way will be really easy and you should have no problems killing them. You will meet Pavel who will want to join up with you. I would recommend taking him because two is better than one. Explore all rooms for loot and when you reach a room with an old man in it, know that things are going to be exciting soon enough (if they're not already). After talking to him you'll reach level two. Yes! Level T-W-O! For free. And that's the reason you didn't go back to kill all the goblins. After you level up, go exploring again and collect loot as you do. I don't really want to give any directions because it's pretty obvious where you need to go.
When you reach a very (I mean very) large room, know that you will be fighting a "boss" of the Prelude. Yep, it's the same pesky mage and this time you will get him for good. You can either avoid him or try to kill him as quickly as humanly possible because his magic missiles sting a bit. Or you can leave Pavel (if you took him) alone to battle the mage. He will either fall or will kill him alone. He will eat the magic missiles for you anyway.
After the battle, search the room and head through the door. Goblins await you in the next room but you have enough backup to kill them easily. When the goblins are dead talk to the elven man named Fenthik and learn that the Waterdhavian creatures have escaped and he asks you for help in finding them and making the cure for the plague. You can rest now as your battle at the academy is over. And for that you get another level for free (last free level).
That's it! You're done with the Prelude and are now moving on to Chapter 1!