QfG4
can be pretty difficult, but the logic behind sleeping at the inn is sound - especially during the first few nights, and even more so if you don't have strong stats.
For a start, Mordavian nights are far more dangerous than Mordavian days because you get more random encounters, and against far more dangerous monsters. It is wise not to wander too far away from town, and to make a map as you go.
What makes QfG4 even more challenging is the fact that you can't get more than one healing potion and poison cure potion per day (at least from Dr Cranium). You can get more if
you find the Thieves' Guild. So it is best to stay away from battle, at least to start with, and to train up your stats at the Adventurers' Guild.
I don't think there are any other logic-based dead-ends. There are other dead-ends if your computer is too fast - e.g. the infamous Error 52 and others.
To sum up, QfG4 may be challenging, but it is definitely worth it.

Once you win, try it out with other classes too. They have their own paths and their own quests.
Good luck!
