A fair attempt... The graphics and gameplay are simple and elegant, and I think you cloned the important gameplay aspects from Final Fantasy Tactics, but there are other issues, namely the control scheme. First off, the little red spinner showing whose turn it was helped, but not enough. Having a unit light up when its turn came would have been much easier. I also don't like that it's somewhat difficult to roll over the tile you want. This interrupted the flow of gameplay horribly, especially since there was no way to change the angle at which things were viewed. While it's not strictly necessary to make the whole map rotatable, I would have appreciated something even as simple as an overhead view, like Tactics Ogre does. Since this game doesn't make much use of the height stat (there are very few instances in which someone is too high or low to attack), I think the overhead view would have proved itself to be a much better option.
The graphic scheme also made the controls harder to handle. Enclosing each option for this or that within a box and adding more sound effects for each popup would have clearly highlighted every gameplay element, making things run smoother. The windows and interface also seemed to pop up in the wrong places, making it increasingly confusing to play the game.
That being said, I think the party system and point system were great ways to simplify a game that's otherwise much too complex for Flash, and the level editor is a really cool idea. The AI is fairly impressive, and what you have here is excellent groundwork for a better game.
I'm not much of a graphic snob, but the main thing getting in the way of this submission is the confusing nature of the graphic layout, which makes gameplay close to impossible. However, for 2007 this is pretty damned good.