Find the shotgun in town and the ammo in the tower, kill chainsaw bag-head dude, get ganados in a group so you can shotgun their heads in one shot. Kill enough ganados, the bell sounds, they go play bingo in the church and leave you alone. End demo.

Basic thing to remember for RE4 is to keep moving or someone's gonna throw a friggin axe at your head or cut it off with a chainsaw. Shoot people in the legs to get money (pesetas) and I think shooting them in the torso or head might give bullets or herbs.