ok, so I walk into the slums, and there is a gang waiting there.
.
.
.
.
.
.
.
.
.
.
.
.
.

It consists of this dude Alhelor, and Sir Bevers, Sir Paritin, and 2 or 3 other knightr type dudes, they kick my ass EVERY time. PLease help

Party composition and levels?

I can't recall ever encountering these knights, what mod are they part of?

Hmm...with all those 'Sirs' I wonder if they're either

1) The anti-Paladins (Tactics?)
2) Random city encounters if you're evil (Tactics) or
3) Vampire hunters (Valen)?

I checked another thread apparently if you bail on windspear hills they hunt you down. I slid the difficulty slider and killed them.

True. If you visit the Windspear Hills and return to Athkatla without having restored your honor and good name, the Order of the Radiant Heart will ambush you. Roleplay or die! :D

Can you still save the kid, that the dragon may or may not have? I don't want to have to start over......From the beginning

Short answer: Yes.

Long answer: If the party of knights appears and you return to the Windspear Hills, rescue Garren's kid, and return to Garren's house so he can tell you that the Radiant Heart don't want reveng on you anymore, when you get back to Athkatla the party of knights will STILL be there.
If your Save is BEFORE the Knights show up, you can return to Windspear, save Garren's kid, etc., then when you go back to Athkatla the Knights will never show up at all.