Dragon Wars

Dragon Wars takes place in the magical land of Dilmun, an island of salvation perverted into a world of horror by Namtar (as you might expect - the bad guy).

The player starts with a party of four in the city of Purgatory, equipped with nothing more than.. well - nothing. Worst of all your magic users won't help you out, either, because magic has been banned (to correct this unpleasing situation is one of your main objectives). Other main targets are surviving, getting out of Purgatory and toppling Namtar (maybe getting some decent clothing, one or two shiny swords and the like on your way out).

Gameplay instantly reminds of the Bard's Tale series. Step-by-step first person 3D, opponents materialize out of the air. The combat system is turn based.

Unlike its (spiritual?) predecessors the game features a full-blown skill system, auto-mapping and many places to actually use all these abilities.
Reasonable distribution of your skill points is rather critical.