I haven't had any issues healing up yet, since I have starter potions, and for the most part, if I survive the combat encounter, I usually haven't been damaged in it. It's usually one or two shot deaths anyway, so I'm either dead or unscathed.
I'm uploading a video that concludes the Embershard Mine. It's funny, though. When I watch this video back, I feel like such a dumbass, haha. Let's just say, the combat would have been much easier if I realized that arrows weren't doing any damage to the heavy armor wearers. It takes me a few deaths to figure that out and it's much easier once I pull out that Dwemer control rod!
Oh, and I just disabled the compass and quest markers, and downloaded Better Quest Objectives mod, as recommended by the Requiem .pdf. I read most of it, so now I'm better prepared for the mod. Should get really interesting from here on out as I continue to explore it's depths.
With all these mods, the game should be much more "hardcore" now, and possibly feel more like a Morrowind experience.