Yes, it is possible. On the options menu reset all quests. Create new characters - your old characters will still be there as well. By adding and removing them from the party while in the inn you can exchange equipment and whatever.
I found that the best time to change classes was when a warrior class reached between 5-10 levels. It seemed better to wait to change magic users until they reached level 14 and had learned the best of the higher level spells. My first class changes all took place around the time I was first exploring the Ishad N'ha area. Though the first levels on the new character classes were achieved very quickly, mid and higher levels took longer. Your changing class when you got to the Brimloch Roon area would greatly accerate the leveling process as the monsters there are worth far more experience. Personally, I like it that way!
Wyv
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