yah...it was very tough the first time around. and they call these leveled creatures?
still, my bow and sneak came in handy. sneak shot the first time, whip out your weapon. I also (through chance) stumbled upon a nice find. If you ask the guy who approaches you when your first in the gate to follow you and help fight rather than go back to the others, he eventually dies (this can be accelerated depending on how much you assist him

)
he is wearing a full suit of chain mail (nice for light armor) and a good shield. that helped my char alot (like 5-6 extra AC). and it didnt count as stolen either.
That, and i also splurged and bought a silver greatsword. sneak atack with bow first shot, pull out great sword, and use block.....but I found that if i kept on moving it was hard for them to target me. and i was fast enough to jump in and hit them and back out before they get a swing at me. Watch their swing animations...they have predictable patterns.
This step in and swing then step out pattern also helped me kill a nasty frost daedra in another quest. your movements in this play a big part in combat. Dont forget that when you are crouched (sneak) or when you are blocking your char moves alot slower...cycle between moving and blocking.