Hello davely
1. I would suggest having at least 50 hit points (HP), if not more, before venturing towards the Ghost Swamp. A good tactic is to block with your shield then swing. If you listen, then you can hear the creature attack, with an interval. If you block the attack, you should be able to get 1 or 2 (or even 3) swings in before the next attack.
A sword and shield would be a good idea, or a good bow (death from afar that way). Either way, remember that there is no dishonor in running away to take potions to then resume the fight with better health. Consider it the PoG Monty Python Maneuver.
2. There is no way to control the difficulty, but there are a few cheats. They can be found (url="http://"http://www.AmbrosiaSW.com/games/pog/addons.html")here(/url). Gold is the only one that comes to mind, but I don't use cheat plugins that much. You press a key, and get 1000 gold pieces for each time you press it.
Lit Nerd
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"O For a Muse of Fire, that would ascend
The brightest Heauen of Inuention:
A Kingdome for a Stage, Princes to Act,
And Monarchs to behold the swelling Scene." Henry V