This is what I would do: explanation follows.
M Dwarf Fighter1 CR 1; Size:M Type Humanoid; HD (1d10)+3; hp 13; Init +1 (+1 Dex, +0 Misc); Spd Walk 20'; AC 17 (flatfooted 16, touch 11), Shortbow +2 60'/P (1d6 20/x3 Both M ) or *Waraxe (Dwarven) +4 0'/S (1d10+2 20/x3 Primary M ) or ; SA: Stonecunning,save +2 vs. poison,save +2 vs spells,+4 dodge vs giants,+1 to hit orcs/goblinoids,+2 on Appraise of stone/metal items,+2 on stone/metal Craft check; Vision: Darkvision (60') AL: NG; Sv: Fort +5, Ref +1, Will +0; Str 15, Dex 12, Con 17, Int 11, Wis 10, Cha 8
Skills and Feats: Climb +0, Ride +5; Exotic Weapon Proficiency, Weapon Focus (Dwarven Waraxe)
Possessions: Scale Mail, Shield (Large/Steel), Shortbow, Waraxe (Dwarven),
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Your party lacks an anchor, someone who can hold a position and give the others the safety they need to act.
IMO, a fighter is the best class for this. Barbarians are limited to light armor and their high movement rate encourages them to move a lot; and their rage often distracts them from the duty of protecting the others. Monks have similiar armor/movement issues. Rangers are limited to light armor and lose some of the combat focus in exchange for their wilderness abilities. Paladins work better with higher stats than you have.
Dwarf is a good race for a couple reasons. You get darkvision which is very useful underground, as well as extra HP from the CON increase. The major drawback is a lower movement rate; depending on your DM's style, this may be serious enough to switch to human.
Half-orc is another good option, but I hate playing characters with only 1 skill point per level.
Human is the second best racial choice. The extra skill point and feat can be put to good use, and you get a good movement rate.
The other races don't have the staying power needed for this character.
In order to hold a position, you want high armor class, so a weapon + shield fighting combination is the best call. AC 17 is not too bad for 1st level.
I chose weapon-related feats to give your character some oomph in combat. The Exotic Weapon gives you extra damage right off the bat, and Weapon Focus helps you hit. The other option I would take is Power Attack & Cleave; Power Attack is not useful at low levels, but Cleave is great when fighting lots of little guys.
Here's how I might advance him to 4th level:
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M Dwarf Fighter4 CR 4; Size:M Type Humanoid; HD (4d10)+12; hp 41; Init +1 (+1 Dex, +0 Misc); Spd Walk 20'; AC 18 (flatfooted 17, touch 11), Longbow (Masterwork) +6 100'/P (1d8 20/x3 Both M ) or *Waraxe (Dwarven/Masterwork) +9 0'/S (1d10+5 20/x3 Primary M ) or ; SA: Stonecunning,save +2 vs. poison,save +2 vs spells,+4 dodge vs giants,+1 to hit orcs/goblinoids,+2 on Appraise of stone/metal items,+2 on stone/metal Craft check; Vision: Darkvision (60') AL: NG; Sv: Fort +7, Ref +2, Will +1; Str 16, Dex 12, Con 17, Int 11, Wis 10, Cha 8
Skills and Feats: Climb +5, Craft (Stoneworking) +3, Ride +8; Cleave, Exotic Weapon Proficiency, Power Attack, Weapon Focuss, Weapon Specialization
Possessions: Breastplate (Masterwork), Longbow (Masterwork), Shield (Large/Steel/Masterwork), Waraxe (Dwarven/Masterwork)
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Not the most well-rounded of characters, but if you are looking to anchor a group he's a good choice.