Hear ye!
My thoughts on the project:
First, menus are not the most important part of the game. In fact they're the -least- important one. It's the aluminum wrapping around your chocolate. People don't care much for menus, hence why a menu should be your last priority. Besides you have a long, long, LONG way until alpha and having to go through the menu every time will piss you off and waste perhaps hours of your time. Trust me on this one.
Second, the gameplay. You have to focus on the gameplay! For the time being I just see a guy walking around. The engine probably doesn't have it's singletons up, doesn't have an audio, event manager, it probably doesn't have anything. This is where you should be focusing your attention.
Third, the storyline. Really, RPGs are about telling a story. In flash you can't make Diablo2, as hack&slash RPGs have to be technically superior to storyline-oriented RPGs. For example look at Planescape: Torment. The game had a clunky interface, several flawed design decisions such as fog of war in cities, low resolution and odd combat system. BUT all that was forgotten in spite of it's amazing storyline, well-developed characters and the incredible mood, the gritty feeling the world had. Remember this, your RPG should be a much more flashy and interactive way to tell a book. It has to have a storyline. Get a game designer and storyline writer writing! Without it your game will suck!
As for your engine here are a few tips from a professional coder:
1. Use AS3 if you aren't already.
2. Use OOP. RPGs are by far the most advanced games in the world. Learning OOP will get you a long way.
3. Lay out your game structure. Make an application class that handles the menu, loading, ect and a game class that handles the current game session.
4. Use XML as your world's language. It's simple to implement and will give you many opportunities.
5. Make a level editor. Do NOT edit levels off the scene (actually that is implied by the use of XML). I made a commercial game once that used XML levels but didn't have a level editor. You can't imagine the pain.
6. Use external libraries. There are many libraries which will speed up your game or coding process. Such as bulkloader or polygonal's data structures.