I've had this game for a while and every now and then I decide to play it. The first half is really great but, as everyone else has noted, the second half is crap.
I was looking at the pictures on the GOG page for this game and I noticed that the player's character is only level 6 but has over 1,00,000 skill points. There must be some sort of cheat or hack involved right?

This kind of cheat can be done easilly in any game. You just have to use a program
like Cheat Engine to modify the memory while the game is running. You can then have infinite skill points, money, spirit energy or whatever you like.
Of course, overusing such program can kill all the fun.

Hello Mate,
I have downloaded a chbeat engine ut have no idea what to do with it....could you please help me?

Cheat Engine is a generic cheating tool which can be used with any game.
To use it just do the following :
1. Launch the game
2. Launch Cheat Engine
3. In Cheat Engine, open the process of the game (eg. game.exe)
4. Enter a value in the box and hit first scan
5. Go to the game change the value
6. In cheat engine change the value and hit next scan
Repeat 5-6 until Cheat Engine has found the corresponding memory adress and
change the value to the one desired. Return to the game et voila !
There are many more possibilities, try the tutorial that came bundle with Cheat Engine (Tutorial.exe).
Here's another tutorial with screenshots.

The best cheat is the PAUSE key. You can do a lot of things whilst the game is paused (drink all the potions you want, drop explosives, change your underwear, LOL... etc).