Yep, people were cursing them shifty kobolds in my game on Saturday night too. They move adjacent to one and IT SHIFTED AWAY. so, now they need to move closer. Made it tough for the fighter to get cleaves
As to the comment that a 1st level Kobold has more HP than the paladin, I actually like that. An example is this:
A Party of 5 PCs can dish out around 8 points of damage each (averaged across the board based on Powers & Weapons), and if they concentrate this damage on one enemy that is 40 damage, or enough to take out one per round of combat, or 5 rounds of combat for a Solo Monster (averaging 200 HP). Again, this assumes every attack hits.
That same monster can only attack ONE PC at a time, and will deal often less damage per attack.
So, the High HP kobolds means a battle truly feels like a threat no matter what the level.
Additionaly, as someone mentioned before the game is scaled so a PC needs around a 8-12 to succeed at something. Look at a PC attacking a similar critter with a BASIC attack. They will have an attack that is made at 1/2 Level, + Abililty + Class + Proficiency + Feat + Enhancement (Magic) + Misc. Usually this would mean something like:
1st Level Ftr with 16 Strength with Longsword:
0 + 3 (Str) + 1 (ftr 1-handed weapon talent) + 3 (Prof Longsword) = +7 attack.
His foe's AC is calculated:
10 + 1/2 level + Armor* + Ability* + Shield + Class + Feat + Enhancement + Misc
* Heavy Armors do not allow for Ability bonuses
So, the above figther attacking a 1st level foe in Plate Armor with a large shield would be:
10 + 0 + 8 + 2 for an AC 20
So the fighter needs to roll a 13 to hit this buffed opponent.
The Beauty of the system becomes apparent when you look at the same people over level.
Lets assume the fighter is now level 10, and as he increased in level, he bumed his strength from a 16 to an 18. Nothing else has changed for him, No Magic or additional abilites to boost his attack. He is now:
5 (1/2 level) + 4 (Str) + 1 (ftr 1-handed weapon talent) + 3 (Prof Longsword) = +13 attack.
His same opponenet is now also level 10, and has no Magic armor and is still equipmed with Plate & Large Shield, so he is now:
10 + 5 (1/2 level) + 8 + 2 for an AC 25
The fighter now needs a 12 or better to hit. He has imporved his chances by +1.
As can be seen, as the PCs go up in level improving their attacks, the defense go up at pretty much the same rate allowing for combat to scale appropriately. High level PCs are not missing only on a 1, monsters are not slaughtering PCs because their Attacks are higher than a PCs AC can be.
I like it.