I thought your first few were very dissapointing. They had no story and the battles were brief, pointless and unexciting. However, now the battles are generally more elaborate (I think you could still use some work there) and the dialogue is unbelievably better. Two major criticisms:
The Cloud sprite was ass.
So, Setzer was a 'good' guy, and killed Sabin in self defense when Sabin tried to murder him... and now their morals have shifted on each other? It doesn't make sense and isn't very smooth. I suggest you edit where Sabin originally falls to make him seem less evil, and Setzer less good.
Also, what is the first song? It is awesome, and sounds painfully familiar, but I can't place it.