Yeah this source is before I solved the NPC moving issue; sadly I can't find any of my further updates.
I basically just copied over the one I sent to Drewdelz and uploaded it. There have been a few changes since then.
The memory issue is odd; I haven't a clue where it's at. It's one of the issues causing a halt in the development. I barely noticed it until later on in the development, but I've removed each individual engine to pinpoint it and it still continues
Also @ Neik - the engine was nowhere near finished :p I uploaded it due to lack of progress over the past few months, and want to see if other people are interested in contributing moreso than using it. Collisions, tile animations, etc are elements I intended to impliment later.
A lot of the stuff you'll see in that room ATM are WIP developments; so most of it is either horrible unfinished (IE the NPC), or still in the process of being worked out. It'd be better to check out the source itself than the actual room in use. Even the A button error was due to some changes in the inventory system. It was also corrected in the later revisions. If I'm not mistaken it's a very simple bit of test code in the inventory system.
I'll probably revise this source a little bit to remove the test elements in the main room; I probably should have checked out which revision it was before uploading it; I wasn't entirely sure how far back in development it was. Apparently it's about 3 revisions behind from the current.
O_O Also I just noticed the tag was changed to "[DEMO]" which is horribly misleading because this isn't a demo... It's released source. It's not meant to demonstrate anything D:...