Level 2 (which is actually the only level I've worked on so far) is coming along amazingly well. I have all the puzzles worked out and coded. The only thing left is some tweaking and the boss room. There are now 4 global (meaning they can be taken anywhere) items in the level. There are also a number local items which can't be taken out of the room they're found in. Some items are just used as a "fetch this item" type quest, but a couple have an action associated with them which will help you solve the puzzles throughout the level.
I figured out how use the Alpha Channel object to make some more professional-looking shading and lighting effects. You can see the difference in the two screen shots below. This has opened up a lot of new possibilities for the game's graphics.
Before alpha channel
After alpha channel
BTW, the flowers in these screen shots are from RPG Maker XP and are placeholders. Does anyone want to help me come up with some originals? Message me and I'll definitly give, in-game credit to anyone who helps.
Love what you did with the alpha channels. You could even use more alpha channels to blend the edges of the daylight too, so you'd lose the 'jagged' look about it. Looking good though, cannot wait to play!