It's a little hard to answer your question without knowing what kind of party you have, but I had no problem with the Bone Lord when all my people were level 1. Some things that helped:

(1) RUN right in and stand right in front of him. Whack at him and ignore the lesser skeletons until he goes down.

(2) I have two priests in my party. One cast SLOW on the Lord, the other BLESSed the party. Both of these helped.

(3) SPARK and BURN are useful, as well.

Hope that helps...

-- d

I just bought the game last night and played for a few hours. I noticed that my lvl 1 party is getting the snot kicked out of them the second the Bone Lord appears in the cemetary. Should I just kill trolls and rats to build up my characters for a while? Should I attempt the deliver the package quest to the other town? I expected the first quest to be an experience builder, but I guess I am wrong.