The spell Blood Cocoon is the most important spell in the game. Make sure you have at least one character putting character level worth of points into this spell each level-up. Use a Board/Sword on the front-line with all the best AC equipment who's also doing the same with the War Book skill Shield Mastery (though I didn't go beyond level 5 with it as some 2nd/3rd tier shield skills are better IMO). When you see the monsters in the darkness, get your Blood Cocoon started on your Board Sword and just have him approach the monsters. Your other fighters are best to then apply ranged damage/spells, or just pile-in if your yet to find any ranged equipment. If someone starts taking damage, have them run around making full use of pause and move, but be careful not to run them further into the darkness.
The well in the second town is the well inbetween the fields. Have each character specialise in at least one personality skill per level-up (these specific skills max at 5).
For quick access to non-bought equipment, there's a gang of three Bandits if you turn right (as you look at the screen, left from the character's perspective) in the first real area. You should get some crossbows, armour etc if you can bump them off one by one. It will be a challenge though, but it will then make all the Goblins and what-not easier. Basically, it's worth the reloads on this battle to save reloads elsewhere.