Salutations WW....What I have gleaned from my readings of the board is as follows:
If one is too high of a level while leaving the monastery for Arnika or elswhere, you will attract real nasty brutish foes in large quantities. This seems to be the worst imbalance in the game that gets reported in any real frequency(that.....and monster alley which you'll see later in the game)concerning party/enemy levels. Some, will hold back to level 8? or 9? 'till reaching Arnika so as not to get pulverized on the way(especially important in ironwench PC? mode). Other than that, just level up naturally and if a situation is too tough, go back later. The game is sufficiently non-linear enough to make that not such a problem, and a tough foe now will be your blade fodder after a couple of level-ups.
Karst (Loyal Order of Diaper)
If you attract stronger baddies, you get more points for killing them and level up faster. Sometimes I will hold back on a level-up when a character is 1-2 points away from a new spell level (level 2=15, level 3=30, 4=45, 5=60, 6=75, 7=90) and I will work that spell realm until they qualify for better spellpicks. Normally I promote as soon as possible.I have run 5 Wiz 7 transfer teams with good weapons and armor. And I have run 3 startup teams with Monastery-issue equipment. All had trouble on the road, and all were around level 7-8. Level is not the problem. Weapons are not the problem. The road is easier if you are patient and know your enemies tactics and weaknesses and know your own strengths and weaknesses.
When the bad guys are blinded, they run away. Do you have flash powder or (better) blinding flash spell? Even level 1 can thin them down to a managable level. Paralyze? Freeze Flesh? Noxious fumes? Insanity? You don't need to kill them outright. You need to stop them from killing you outright.
Are you standing in the middle of the road?
Do you have missile shield, armorplate?
Of course you have used that circle-with-colored-dots-on-the-right to arrange your best players in front and weakest in back.
Do you have x-ray? The most useful spell for traveling Arnika Road or anywhere else. It lets you see whats coming and RUN AWAY. Remember, he who turns and runs away lives to turn and run away another day. It also lets you watch the movement of the monster groups, allowing YOU to choose when to attack a single group. Do not let THEM choose the time or terrain.