Battle Stuff:

-The first battle, it's very easy for the blue haired dude to die, he is useless all he serves as is an extra attack/item command. Give him some skills or something. 

-Charge aura is overpowered, you can out-heal any incoming damage easily. Making it heal at a percentage is a bad idea. Keep in mind healing per turn conditions do it once per GLOBAL action (anyone doing anything will trigger the healing effect) since power aura is 10% + 2 hp, in a battle with 3 characters and 2 monsters (5 battles total) [b]that is 50% hp + 10 hp recovered when everyone has had their turn.[/b] It is so broken that you can come out of the boss battle with the purple haired dude with max health and everyone else dead, (the girl also has charge aura but I assume she got owned due to low max hp).

-The monster encounters are weird. Some seem like the typical CT encounters (mushroom dudes inside snow, engage them and battle starts) but other monsters either zip right towards you and iniate battle without warning, others slowly follow you. IMO the original CT has the best monster encounter system in RPG history (it's all the most easiest to do besides random battles) and you didn't make use of it at all.

-The mini blue rat things have too much AGI. They have almost twice the amount of the entire party when in a trio. My guess is that you have no idea how agi works in rm2k3 (and thats fine), and thought that boosting agi to characterize small and speedy rats would add flavor . But their battle ended up being 3 minutes long because of how slow the atb was based on the agi they had.

*The ATB slows down immensely based on how many monsters there are and how much agi your party has compared to the monsters in total (or something like that, rm2k3 is very stupid with AGI) the only way around this problem is to lower the monsters' agi just enough so that you're not watching the atb slowly crawl across the screen. Most people resolve it by keeping every monster/heros agi roughly the same and static throughout the entire game (with the monsters much lower than the heroes but high enough so the monsters get a chance to attack too).

-Poison is also very overpowered, on the boss it can do exactly 84 damage, thats almost the same as attacking (roughly 86 damage on my run). He was easily killed from me using charge and toxic at the start and mashing attacking until he died. Due to those two skills, I jacked up all the tabs on the main dude throughout the demo and basically solo'd the boss. The other two characters are useless compared to him.

http://rpgmaker.net/articles/371/ use this as a reference if you ever intend to balance your game at all.

Graphics:

-The edits and mapping are a complete mess I'm not really sure where to begin.

-The snow forest is terrible. It's like you took the guardia forest chipset, filled it with a white spray can in ms paint, and spread the chipset everywhere. I know gaurdia is a hard forest set to work with but at this point you could have just used the snowmountainforest instead, it's not as foresty but at least it's not ugly. Either way your mapping needs work, the only okay ones were inside the academy but even those had really needlessly long hallways.

http://www.fantasyanime.com/squaresoft/ctmaps_area.htm take a look at those maps and notice how they have very shorten halls in the zeal palace (far right side) This is not a means to keep the CT authenticity but to at least make it presentable to walk through (also short enough so it's not a waste of time)

-why is melchior's beard pink

-The catepillar system is awkward, if you stick to a corner and try to walk into the ceiling, the characters behind you will go on their own fidgeting around you and walking on impassable objects. I have never evented a catepillar system before but I would just use the pocket dimension excuse (your characters walk into you to be part of the party) if I couldn't get the catepillar to work properly.

Story stuff:

-Some of the intro dialogue uses too many ... triple ... dots ... aka ellipses. These should be used sparlingly, usually in an emotional/impactful moment. Even if it seems fitting for an injured to spam it, it isn't. *Wheeze* "we're being attacked..." Is a little more presentable than "We're...being...attacked................"

-ok why is melchior's beard pink

-The dialogue in general just seems rushed It's hard to give helpful advice on this sort of stuff given the feedback format I am using, but there's definately something wrong with it. Mainly because too many characters talk at once and seem quick to deliver their given plot points.

-In the middle of the intro you have a disclaimer stuff about it being a fangame and copyright blah blah, why couldn't you have that in the readme or right before the intro? You completely break the scene for no good reason.

Anyway I'm done writing feedback for this game now. Generally I feel this seems like your 2nd or 3rd attempt at RPG Maker, there's a lot more mistakes and imbalances littered everywhere, it's nowhere close to bearable. I was about to give up after beating the boss fight, but of course by then the demo ended.