Screens look good thus far. I think I'll have to jump on the general bandwagon against the gossip stones. They do seem a bit big. I'd enjoy seeing a demo sometime soon, even if its just a walking demo of the village, its good to please people and get input on the game engine part, just as much as the graphical end.
I think Phantom Hourglass is a good way to consider re-creating OoT in a '2d' setting. The game itself isn't 2d, but it's very similar to 2d games. The only difference is the way the battles are at the end, those are more of a 3d setting, which gives you the ability to better adapt to your environment to fight off the bad guy. It might be a good consideration to future developers. I think taking a 2d game and putting it in a 3d environment is a challenge I've yet to see it done successfully (not touting your abilities or anyone elses) its just hard to capture that, almost required, 3d feel.
Keep up the work, I look forward to some type of demo in the coming weeks.
