AAAHHH!!!! They're after me! I went to the docks district and went through some alleys. I am a level 3 Barbarian with 48 hp, and was assaulted by some muggers. I killed them. Soon after I was assaulted by some more. I killed them too. Then I was snuck up on by about 5 muggers and ruffians, and I tried to fight them, but there were too many! I used up almost all my potions, then decided to run away and try to make it to the gates, where the militia soldiers might protect me. As I ran (in the wrong direction), I kept picking up more muggers and bandits on my trail. I had about 14 after me when I got to the gates. Weird, they just disappeared. Also, what do I do with these red coins?

The Docks is probably the hardest of the four chapter 1 districts. You might want to pick a different one, until you get to level 5 or 6. Try the Peninsula or Beggar's Nest. Also, try bringing a henchman along for some added firepower. They aren't really needed, but do help a lot in chapter 1.

The red coins can be traded for items in one of the taverns in the Docks district. They can also be used to bribe your way into an area, but there's a better way to get in.

If you talk to Aribeth and ask her if she has heard anything about the creatures, she'll tell you about rumors coming from one (and only one) of the districts. When you finish that district and ask her the same question, she'll tell you about another district. The order she tells you is Peninsula, Beggars, Blacklake, then Docks. This is in the general order of ease, though certain characters (like clerics in the Beggar's Nest) have it easier than others. In other words, when all else fails, follow the order Aribeth gives you. That is definitely not set in stone, since you can do the districts in any order you like. But you'll find it easier to do them in the order given most times.

Also, a henchman really helps in Chapter 1 (and are not too bad in the other chapters, either). You probably don't want to pick up Daelan (the barbarian) or Grimgnaw (the monk), since they overlap your abilities too much. However, any of the others are great to back you up.

Why didnt you just use the stone of recall instead of running all the way to the gate?

Yeah, I forgot about that... anyway, I did most of the Beggar's Nest, those zombies are real easy compared to the diseased thugs, muggers, ruffians, and escaped prisoners. I went into the warehouse, found the plot of the Sword Coast Boys, and beat that dude that weilds the double mace in front of the captured guard. I went through the crypts, searched in the graveyard, and still haven't found any evidence as to who gave the dude the power to be undead and is creating the zombies. Spoiler needed please, I have been searching for hours!

In the graveyard, you will find two crypts. One is locked and is part of a different quest. The other you can enter. Search that crypt thoroughly, and you should find the answers you seek.

Also, be sure to explore the main Beggar's Nest area. There's more to be done there, including a few friendly people you might want to talk to.

If you haven't already done it yet, try to buy maps of each of the four districts. They are available from various merchants in the City Core. By possessing these maps, the districts will show up fully explored when you enter them. More importantly, all important entrances will be listed. Be sure to always check all marked doorways. (Forget about the Academy though, you can't get back in there...)