Here is what to do:
1) Go to the Game Options Screen and click on Reset Adventure. "It clears all of the current adventures, including quests and guild ranking, and resets the game as if you had never played, but leaves your characters untouched with any experience and basic equipment they have gained...." (For more on this see the manual on page 47).
2) If you have characters "Out adventuring" you can use the Revert option in the Inn to bring them back into the town. Then you can start over with them again or create new characters and transfer the equipment and gold from the old to the new.
Hope this helps.
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