I would have to agree with the others. Get some more experience before you go after the Dwarf and his gang. Not only is he tough when you are low level but there is a magic user as well (not very tough but still at lower levels presents an added challenge). As was mentioned in previous posts there are many side quests that you can do at the start to help you level up a bit.
As far as heading off to the keep...Wait until you have gone up a few levels. There are a lot of trolls and nasty spirit trolls that can do some fair damage not to mention, that even when you think they are down unless you use fire or acid they will be back in your face in no time.
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