Decided to level up to level 4, but it made no difference. And a bit hesitant to increase stats until I find some gear upgrades. So I can increase required stat for that item.
Yeah, stay away from the Catacombs until waaaaaay later, it is a horrible place and along with Tomb of the Giants exist to screw first time players in every horrible way imaginable. You want to head up the stairs to the bridge and into the aqueduct, this leads to the first 2 areas on the game you want to visit.
In terms of stats, until you get a solid idea of what you want to do in terms of your build (Heavy Str, Dex, lots of Magic etc), I would aim for:
16 Str = Req for Drake Sword
14 Dex = Req for Long Bow
After this put points into Vit and End till both ~16.
The Drake Sword is an stupid and OP weapon which requires the Long Bow and some patience to obtain but no actual skill, it involves shooting a dragons tail enough times in total safety till it falls off. It has incredibly high base damage, stupidly low requirements and an awesome heavy attack replacement, place this on top of the fact it's 1h and you have a weapon which eclipsed basically everything available in the early game without massive soul farming.
It also makes the first 1/4 of the game infinitely easier and for a first play through I would highly recommend it, check the various Wikis or Youtube for a guide on how to get it in more detail.
One more thing, did you start with the Skeleton Key? If so there is a very nice shield available with little effort, you (usually) have to die to get it as picking it up makes something big and nasty rather angry but it's worth it.
I won't go into detail but if you DID start with the skeleton key, look up the Dragon Crest Shield for info.