One for me, one for the gf, one for my mom and a Kindle Touch preordered!
I started off as a Wanderer. It had the best arrangement of starting stats for me and his gear is super light, allowing me to dodge pretty easily. I think I was level 10 when I killed the Taurus Demon, but I started off at level 5 or 6. At level 3 I take it you started off as a Pyromancer? If so, I'd forget about using magic on this guy and start boosting some physical stats. Strength and Dex will increase the damage of most weapons and if you found the Winged Spear like I did, it requires 13 str and 10 dex to wield with one hand. I personally like boosting Endurance if I've got some souls I want to spend for the added load capacity and stamina or Vitality so I can get some more HP.
I'm using a Winged Spear and one of the shields that the zombies in Undead Burg drop. I was using a Heater Shield before that (bought off the merchant near the bonfire you're likely using).
Even with the Curse item I wasn't doing a lot of damage to the ghosts so I got the hell out of there. I haven't found any merchants selling that item. I got a spell since then that I haven't been back to test out, but I'm hoping it will do some damage to the ghosts. I suspect Blighttown (as the NPC called it) is down that way.

