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[Scatty]

Ok sorry, I gave a wrong information. I forgot that this game didn't have this option available yet like the newer games :P
You can start a new game when you into the sub-folder of where the game is located named games (i.e. c:\trail\games) and delete all games and remaining files in it. Then, when you start the game, you'll be asked for the difficulty level you prefer, and begin in the temple of Peraine in Kvirasim where you can create new characters, save them and import them into your party. Also when you get rid of party members you can then find them in this temple (might be a long way to this town from where you are later in the game, though).