You really surprised me with this game. This is going to be a huge success. I was happy like a little baby when I found out the dragon fight was their imagination and that I'm actually in a role of a child in a small medieval village! Fighting rats! With fumes coming out their tails! (And forest fish! lol!)
Anyhow, I wanted to give some constructive critique.
I think it would work better if you'd remove the X button completely and all the talking, interacting etc give to the A, it looks more natural to me since it's the main fighting button already.
When entering sewers, forests, whatever, an arrow appeared that indicated we were leaving this and going to another place, what I strongly suggest you do with all the doors in the game too. Its annoying having to click the button every time we want to go through the door. (you know, like the real Pokemon... ;)
And humor had a bit too much... homosexual references? As if you couldn't make us laugh with normal, clean humor, which I know you could (and did in several other occasions). I'm not gonna tell you to change that, (de gustibus non est disputandum.. we all have different sense of humor) so that wont affect my gameplay experience if you keep it that way.
Oh, but for Christs sake change Deugans hairstyle! That hair-over-an-eye style was just too fu*king disgusting! That was too much! He is supposed to be a medieval hero, not a ---I wont say what.
Uh, to conclude, I will definitely play the other seven chapters and if you keep getting better this might easily become the best thing that hit Newgrounds.
(And dont change the battle style, that one's quite original.)
Until the next chapter, cheers.