Huge understatement. You might want to use a truetype font. Also, change the battle bg. Since battle bgs have no upper layer, when your character goes to attack that spider in the lower-left, he'll run right over the cliff.
that's not a battle bg bub
edit: Well, IceManual got to it before me.
The text everywhere is completely illegible, except for the numbers. I can only make out "Item" "Defend" "Run" "HP" and "AP" because they are all sort of generic RPG battle system crap but everything else is hard to read.