To attack in towns or any rooms, press ] to take out your weapon, and [ to take out your shield. Note: You must have the weapons equipped before doing this.
Cheat mode
You need to open the rgl_config.txt in the Mount & Blade installation folder and edit it. Find the line cheat_mode = 0 and change it to cheat_mode = 1
The gold cheat only works in the inventory screen, The health cheat only works in battle, the instant kill cheat only works in battle, The see all partys cheat only works on the map screen,The AI take over character cheat only works in battle,The add 1000 XP cheat only works in the character screen.
Code
Effect
CTRL+W
Adds 10 to each weapon proficiency
CTRL+X
Adds 1000 XP in the character screen
CTRL+F5
AI takes over character in fights.
CTRL+F4
Each press kills one enemy you are fighting.
CTRL+H
Heals you fully.
CTRL+X
In the inventory it adds 1000 Gold to your amount of money.
CTRL+Left Click
Teleports party to the cursor
CTRL+T
This lets you see all partys on the map.
CTRL+X
Upgrades the selected party member
Strange Armor and Strange Shortsword
To find the Strange Armor and Short Sword, go to Rivacheg. As you go into the town, on the right is a wall. Along that wall is a chest with Strange Armor and the Strange Short Sword.
Unlimited Denars
To activate this cheat, head to reg_config.txt in your game's installation folder and find the line that says cheat_mode = 0. Change the 0 to a 1 and save. Keep in mind that you're doing this at your own risk, because this could potentially mess your files, game, or computer up.
Then, when on the inventory screen, hold down the CTRL button and press X. Doing so will score you 1,000 Denars. Do it over and over again for as many Denars as you want.
Attacking in towns...