@Night: I proved that theory wrong with my churel cliffs map if you remember it.
I have no idea what you're even talking about. Would you care to refresh my memory?
While you're at it, how about you tell us what the exclamation marks are for? Decoration? WoW style quest givers? Solid Snake?
*Abridged*
Your avalon town looks pretty nice, but those big flashing talk/enter icons detract from the looks a lot, and so does the overlay. I'd advise eliminating both of them, or at least toning them down.
The best lighting / overlay effects are subtle and add to the map rather than it simply overlaying and follow the map as you move around. For an example of lighting down right, check out Velsarbor's Introduction.
Anything I can do with rm2k3 limitations in mind?
I'd like to know how what's showcased in this video is even possible in Rm2k3. Generally, it is thought that RPG maker simply isn't meant for this type of battle system; and while it is difficult to ascertain the limitations and difficulties of this guy's battle system, it certainly looks to fun and functional.