New characters left and right, but I think I understand most of them. That swordsman Link tried to fight was Eclipso, wasn't it? From the way Link described him, it was no wander he had a hard time trusting the former villian. Interesting that Ganondorf wasn't in the list of sorcerers, it'd be even more of a stretch (and accomplishment) if he didn't show up at all!
One thing that really bugs me are the girl's legs animations while they are feeding Puffy. It looks like Maria's leg isn't attached to anything.
Puffy is a cool, cute, character. Hopefully we'll find out what he is and where he came from next part.