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Here is a breakdown of the eight party members you will meet as you race to escape the Nightmare. Though if you're like me, you hate spoilers and won't want to read this in the first place. ;D

Megan
Weapon: Giant Pencils
Skill: Graphic Violence

A cartoonist who accidentally falls asleep, getting stuck in a world made up of her creations. All she wants to do is wake up and meet her deadline, but the toons keep saying she has to reach the far edge of her Nightmare, where her eyes are, to do it. She attacks with a giant spear of a pencil, and her skill Graphic Violence lets her draw new things into the environment. These combos build up on themselves every round you add to the drawing, and as long as you don't mess up this can make for big damage. Megan is not able to fight in the real world since her dream is what's causing the toon outbreak.

Cory
Weapon: Guns
Skill: Gunplay

Megan's brother is the first hapless sleeper to end up stuck in the Nightmare. Very smart in the waking world, he's constantly bothered that the laws of physics don't work the same in cartoons. Cory's skill is Gunplay, which adds new ammo types he discovers or invents during their journey...basically meaning whatever or whoever he can shove down the barrel of his rifle. Instead of using MP each ammo type must be collected, bought or made, so always be on the lookout: when you see the lightbulb appear above Cory's head you know he's onto something! In the real world, Cory uses a water gun filled with paint thinner to wipe out toons.

Keegan
Weapon: Fists
Skill: Friends

The party finds Keegan trying to protect Third Time, a town inhabited by clocks. The villagers are so grateful that a few decide to go with him, and Keegan's Friends skill let's him summon certain NPCs you've met in battle. He gets new summons by helping them in their time of need, so when you travel through the Nightmare be sure to help everyone you can. Cast a summon enough and it will gain it's own XP, learning new attacks...and once two summons meet certain requirements, you'll even get special dual summon Combo Attacks. Some unique summon powers can also be obtained by trading hard to find items to the Summon Store in Third Time. Keegan really knows how to throw his weight around, both in the cartoon world and in the real one, and can equip a glove weapon on each hand.

Untapped Female Talent #2
Weapon: Something girly...like.....uh......a purse?
Skill: Girl...thing....girly like......er.......PMS?

Because we need another girl. And every one I know is too damn shy.

Joseph
Weapon: Hats
Skill: Critic

A gentleman should never be without a hat, says Joseph. He actually says quite a lot of things. And almost entirely negative. Despite being friends, Joseph actually hates Megan's artwork, despising it with vitriolic loathing, and is never shy about pointing out everything wrong with it. As it turns out, in a cartoon powered Nightmare this makes him the party's tank! Use Critic to insult whatever you're fighting, pulling aggro. His harsh criticism can also debuff or buff the enemy, depending on how they react when they hear it. Joseph can kill you 47 ways with a hat, no matter what world he's in. Except for "Immune To Hats World," in which he's powerless, so he's thankful that world doesn't actually exist.

Ryan
Weapon: Keys
Skill: Tropeze Artist

Is no one safe from Megan's dream? Now it's sucked in Ryan, a scriptwriter who happened to fall asleep at the worst possible time. Because he's a Tropeze Artist, he can change the rules of the battle by implementing such classic tropes as the "Inverse Ninja Law" and "Did You Just Punch Out Cthulhu?" His keyboard seems to have gotten a mind of its own in the Nightmare, with each key developing it's own attitude; while this is gone in the real world, it also means he can't battle in it.

Mac
Weapon: Fists
Skill: Wicked Game

After spending years of intense training under waterfalls, on solitary mountain peaks and in every dingy karioke bar this side of the Mississip, Mac has honed his kung fu into Wicked Game, a new martial art based entirely on the songs of Chris Isaak. His well maintained pompadour is the key to his Samson-like power, but picking up new CDs is the real secret to unlocking new attacks. Then you'll know when somebody's cryin'. Most CDs are in the real world, since Megan only knows a couple of Isaak songs. He can equip the same glove weapons that Keegan can, so it's a good idea to save all the ones you find: you could potentially have four different gloves going off each round of battle.

Special Mystery Guest
Weapon: What could it be?
Skill: What could it do?

It's a super secret special guest star making a cameo. It's not like we just haven't figured out who the 8th party member is yet. Nonsense. Pffft. Shut up.