very good
but there's always room for improvement.
First of all, while minor, the switching from keyboard to mouse was distracting. I suggest adding keyboard hotkeys for the battle interface and/or allowing wasd movement.
The menu with stats/equipment/bestiary was superb. I've felt that a solid menu was missing from most flash RPGs, but yours was complete and helpful. The ability to hover over an item and see it's stat improvement or HP recover was very helpful.
I'm not really sure what all the stats mean......attack and defense are fairly simple but intelligence and such didn't really seem to factor in........
Make sure you support character loading in your subsequent chapters. It really isn't fair to lose all the work you put into your character this chapter.
All in all a VERY solid showing. I look forward to your next installment.