I'm impressed...
Okay, you have a story, and an interesting one at that. I was totally immersed in it. But it moves to fast, and the characters don't act realistically. I would say your doing an excellent job, but make the second episode longer, with more dialogue.
Technically speaking, this is a great achievement. Not very many people can create a working Flash with graphics like that. However, I would work on your animation. Not character faces or anything, those are okay, although lip syncing could be better. I'm talking about things like walking, or tress blowing about, stuff like that. I also think the graphics are a sort of mish-mash of several styles, which can be pulled off, but you're not doing a very good job of it. Sound is not something to be messed with, that aspect of your Flash is perfect.
In conclusion, I'd say that this is some of the best stuff I've ever seen, rivaling "There she is" and the "Decline of Video Gaming" series. Excellent work, I can't wait for the second episode.