Well, I recommend not using auto save for the intended experience - which can be somewhat frustrating in the short run, but infinitely more rewarding in the long run and much closer to what the main game, Sui Generis, is intended to be. The game is currently divided in three "levels" and there is a checkpoint after each (activate checkpoints in the options menu) which should help to keep you going.
The two main tips are:
- Keep playing the arena to get better at combat. The environment is safe, you can try weapons and styles and once you get used to human opponents the undead which hardly defend themself will seem much easier.
- Avoid fights as much as possible. The beginning of the game is mainly about scavanging enough equipment so you can eventually take on the undead, but any hit you take in your basic clothes can cause brutal wounds. So unless you found decent armor and your weapon of choice, stay out of the undeads way. Most of them are not overly hostile; if you apporach them slowly while not in combat mode and do not bump into them, they will usually let you pass. If you get into a fight regardless, running away is no shame, as is blocking your enemy with objects you find or slamming a door in their face to shut them out.
For more detailed information visit
this community guide. (the guide disagrees with me in one point and tells you to kill every enemy you see... however you will probably make progress faster if you avoid killing things until your equipment is decent).