In Dungeon Siege 2, how do you become a "true veteran" as the innkeeper says?

Question

I'm level 23, in Aman Lu and I still can't expand my party size to 5 people!!! Did I miss something?

Answer 1

It depends on your difficulty. Mercenary difficulty allows only 4 people in a party. Veteran difficulty allows 5 while Elite, 6. To go to the other difficulty settings, you have to finish the entire game in each difficulty setting.

Ex. To go to Veteran diffulty from Mercenary, finish game in Mercenary difficulty. This will unlock Veteran mode (recommended level for Veteran mode is 40). Same goes with Elite.