@Millenium - Yeah, that's about as stuck as stuck can be. That said, I figured out that before starting the big battle sequence you would've had around 1500 Gold. As a word of advice, when you are given the option of 'yes' or 'no' before continuing, it generally means that the next section will be difficult and you won't have access to the shops for a time. But as this might be your only save file, I decided to make you a version where your characters HP are restored:
http://www.mediafire.com/?89c47e8k7n58s6u@polarbr - Well, that's the first time I've heard of someone not being able to get past the first battle =P You definitely didn't have to kill Slepho to beat him. You start the game with 300 gold, so use it to buy some potions (you can get six), and use them in the battle if you're having trouble.