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Fairly simple: blow off a leg, avoid getting bit, and knife away. “But how do I defeat the Regenerators?” I hear you ask. This will help you to defeat large groups of enemies, and it saves ammo. Climb up a ladder, stand at the top, and start swinging your knife. I do have one more tip that will be of great use to you: the Ladder trick. Pretty much the same deal as the first two areas: avoid fights as much as possible, knife enemies as much as you can, use shotgun on large groups of enemies. I promise you all of these are beatable with only the starter weapons and the Butterfly (do not miss it!). Some parts are extremely difficult without the help of the Merchant: the hedge maze, both Garrador fights, Salazar, etc.
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Destroy them with the shotgun or a flash grenade, if you have it (I highly recommend you save them for this). Often, enemies will have Plagas come out of their heads. This part is a bit more challenging then the village, but the same advice applies to this area. The knife will save you ammo, which will come in very handy later on. Avoid fights when you can, use the shotgun on large groups of enemies, headshot and kick when possible, knife as much as you are able. The village portion of RE4 is fairly easy. Guide to Complete without the Merchant Part 1: Village