1) The orc axe (I think it was an axe but it might have been different kind of weapon) you have to get for the smith in the early stages of the game. After trying 6 times to attempt to take on the single orc in the back woods behind the town, getting seriously beat up, going back trying to level some more and attempt again, I finally managed to complete the quest by luring the orc away from his cave, sprinting back to steal the axe and run away as fast as I could before the brute got back.
I haven´t played G2 for some time, but I think you may have this quest a bit mixed up - you can find the orc axe in one cave behind the town, but that´s actually an alternative route to finish the quest and you don´t have to deal with said orc at all, because he´s residing by the other town gates.
Anyway, if you want to get the axe from the orc himself, you can:
a) try to take him down yourself, which should quickly prove to be quite a bad idea, but it´s certainly possible to succeed, especially if you´re willing to use some of the rarer spell scrolls
b) one guy in town wants you to help him to hunt some beasts and since those reside in the same area as the orc, you may take advantage of it and use him to help you with the orc
c) you can lure the orc to guards at the town gate who will make a short process with him
This quest actually shows quite nicely some of G2´s strengths, I think.
Lighthouse bandits are pretty badass, but since it´s a side quest you can always leave them for later.
edit: Ah, Dez already addressed these, that´s what I get for cooking a dinner instead of finishing the post first
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Don't get me wrong. I'm not saying that I didn't enjoy playing the Gothic games, but the frustration level in the beginning portions several times had me close to quitting them altogether and play something more enjoyable instead. For the first 2 games part, I'm glad I stuck with them but when reading about how much harder G2 became with NotR installed I completely lost interest in trying (never did manage to finish G3 though due to savegame corruption).
As I mentioned earlier, I´m quite sure NotR actually smoothens the difficulty curve in the beginning. For example, you get a strength boosting belt (or something similar) in Xardas tower, you get help with the bandits along the way to the city, etc., and I think this goes a bit further into the game (Lares can help you clear quite a nice chunk of the map, for example).
I know that NotR is a relatively difficult game, but it´s also a game which plays fair.
Taking on the biggest monsters later on as a Magician without a solid build is practically impossible; you won't have the mana or spells to do any damage at all.
Playing a mage in G2 was always more difficult (and required paying more attention to character building) than other two classes though.
In NotR, however, you can make your mage at least a bit more versatile - there are some nice dexterity based swords with quite low requirements. There´s also an added Ice Lance spell which makes a lot of difference when it comes to mage´s offensive abilities in early chapters.