Adarias - about the "create your own NPC" are you going to create the sprites or, if we are good enough and match your style, could we create them?
i know that most of the people here are very talented, much better than i am in many cases, so feel free to pixel a character instead of showing a drawing, but understand 2 things. First - every character that is battle-ready has 120+ frames of animation, so unless you are feeling very industrious, Im going to be doing the lion's share of the pixelling, anyway. Second, the sprites as they are now are still WIP and constantly changing, so what you pixel now might be irrelevant tomorrow. see the small update at the end of this post..
I also think the Link sprite i think snake made at the top would be a cool thing to add in, he sorta fits the era and would be a cool reference to some of the legendary games.
Being that the game is to be 100% free and it is easy to not contain direct references to names etc, i think it would be a fine easteregg if snake should like to have it in

i cant wait to see what you guys might be cooking up, theres so much creativity on this board

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UPDATE:
Ive been doing experiemnts with the outlines/inside lines of the characters, and so far i like the results. here is an animated gif, and i think you can see which is the newer:

I also have been experimenting with the tiles, and am equally pleased:

both the tiles and the characters still have a long way to go, but i am happy thusfar with the progress. Certain comments have not been addressed in this animation, but dont worry, i am listening.
The hair is green so that the shades are easier to identify when Fil puts in his recoloring system. the hair of the characters in the earlier images is recolored much the way it will be in the game. the 3 shades of Red and 3 of Blue also are setup to be changed, and the 2 shades of the skin. this is so that we do not have to hand-recolor every single piece an incredible number of times to attain the level of variation we desire
i believe i mentioned earlier that i was working on tall grass, and you can see some of it in the first picture, but it is also a walkable tile that the player can move between, and it will be animated. here is a still shot of characters standing in the tall grass:

Thanks a lot to ptoing for helping out, i am currently using a system where each grass tuft is a single object on each tile, and i think that this is fine for what i am trying to accomplish with tall grass, but what do others think? Ptoing i know wants me to use the house of cards method, with a piece of the object in front of the character and another piece behind, but this would require some real alterations to the coding thusfar to allow for this, so unless people really do not like this look, i dont think we will pursue that as a course of action yet.
please keep the C+C coming! Thanks everybody for the help!