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I'm going to chime in with some advice. I've run some games of Goblinville, and I've run lots of other types of RPGs, too. Goblinville combat turned out to be tricky for me to grasp in certain ways, so I hope I can help.

Try to avoid setting up scenes or adventures about combat. The goblins are not setting out on missions of destruction. This game doesn't work well with that premise. The goblins set out to find things or people that will improve their life in town. Focus on that. With that in mind, I always give the players alternatives to dealing damage to the enemies, and I try to keep pushing creative ideas. The players pick up on it, and they start thinking of creative ideas after you lead by example.

First, give the goblins a way to interact with the enemies in order to improve their position. Let them push a skeleton to the ground, jump onto a table for higher ground, move into a narrow space between furniture or pillars that a larger creature has trouble moving in, or all the goblins scatter to cause confusion among the enemy. Try to think of environmental details you can incorporate into offering an idea of how the goblins can do fun things besides attack.

Second, give the goblins a way to make progress without fighting, and assume they won't be able to defeat enemies if they fight directly. Describe a door near the enemies, and tell them straight up that they can make a dash for the door. Give them ways to trap enemies, or cut them off from the goblins. Give them people to bargain with. Give them ways to sneak around. Give them ways to learn about the enemy ahead of time, to find a weakness. Offer a way out.

Third, when the goblins take opportunities to improve position or try to get out, use indirect dangers in response. Think in the reverse of the first two recommendations. If the goblins try to find a better position, have the danger be that the enemies cut off their escape. If the goblins try to escape, have the danger be that the enemies maneuver to be a greater threat, or they set up some trap that the goblins will have to contend with when they return to the room later. Again, try to find ways of incorporating the environment into the enemies building some sort of advantage.

Last, try to form a sequence of dangers. I love to use one danger to tell the players what bad thing is going to happen. If they stick around, then the next danger is something much worse. For example, if someone tries to jump onto a table to get into a better position, describe the danger as "the necromancer starts muttering a curse and pointing at you as you jump on the table, and the danger is that they'll target you with a magic spell." If they take the danger, the next danger can be suffering some effect from the spell, and probably harm, too.

"The goblins are not setting out on missions of destruction. This game doesn't work well with that premise. The goblins set out to find things or people that will improve their life in town. Focus on that. "

Well said!  Focusing on the premise of play goes a long way.