This might help you if:
a) You are low (or out) of ammo when you reach the village.
b) You are having a hard time surviving, or
c) You don't want Dr. Salvador coming after you with a chainsaw.
When you enter the village (the place with burning impaled guy), don't run into the house that contains the shotgun. Instead, run into the building with a locked metal door inside ( I think it is to the right of the burning dude). After you are inside, shoot a hole in the wooden outer door and pull out your knife. The door will block most of the villager’s attacks (except flying axes, but you can knife those). Now all you have to do is slash with your knife when villagers get close. Your knife slashes will go through the door, plus it will still allow you to kick.