do you have the expansion pack? there you can heal and equip your mercenary. you cant do that on the original, unless there is an update for it.
paladin is actually one of the characters ive played the least. but he has some kinda speed spells..that speeds you up fpr each hit. and then he has some kinda spell that makes you hit several attackers at once.
in the beginning i go back with everything i find, just to get money.
there are no "best" weapons..as long as you use one that does heaps of damage you are good.