This was pretty cool it, it was like Earthbound without the trippy colors, but lots of animating characters.
-Collision detection was annoying. Better to err on too little detection as long as you are not going through things.
-There's a major bug where if you go to the next area and collide with a potted plant. Was testing it and it basically made my character disappear and I had to quit the game.
-The battle system was alright, but I don't see why you don't just make it like Zelda. You're already animating a ton of characters and it uses the same sprites. Plus it just makes the rest of the screen dead with these red and blue zones. The targeting reticules the enemies kept using made it too easy/predictable. If I could walk around everywhere and throw fireballs I'd be a pretty happy person--especially if I could hit NPCs. Right now it kinda takes the fun out of having fireballs.
GRAPHICS:
-Couldn't tell if the main character was a boy or a girl. Thought the NPC was a girl, but after zooming in on the graphics it appears to be the same character.
-The side view looks like a different character. The nose should only be like one pixel at most. Either that or you should add round nudge to the front of the face.
-The enemies come off looking like boxes. I would try getting unique shapes. It would help to use 32 bit sprites that so you can easily create rounded edges and transparency. You could make this game in HD 32 bit with about the same about of effort, so why not?
-The trash can guy looks like he has lipstick. If you change the lighter red to a whitish color it will probably look like teeth and fix this.
-Map objects and characters need to be bigger. It's cartoonie so it's fine. It's hard to see what a lot of things are. Like those trash bags, the potted plant, the railing, etc. The doors of the houses look like the size of windows.
Yeah, so it's pretty good for two weeks. Keep working on it!