You can start out on HoF with level 1's. But it takes some strategy. One of the most important things is to not start out with a full party. Starting out with just a single character means that character can make 4 or 5 levels off the quests in town... then add a few more right before the goblin fight. Once you get going, well, HoF xp means your guys level up fast, real fast, and it'll even itself out pretty quickly.
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