Those screen shots are looking excellent! This game really looks amazing, you have surley got the fantasy look. I have always wanted to make a fantasy game and will when Jon releases his pack.
Though the game itself looks great you really need to work on your storyline (add more detail .etc), tell you what if you need help with it feel free to ask me.
Have you got any weapon models (e.g. swords) because if not you I have a few places you could get some from...
Free Ones
Mace - http://forum.thegamecreators.com/?m=forum_view&t=94147&b=24
Sword - http://forum.thegamecreators.com/?m=forum_view&t=65785&b=24
Axe - http://forum.thegamecreators.com/?m=forum_view&t=82518&b=24
Also if you've got some money it may be worth looking into model pack 9 as it contains a nice Katana, you could easily retexture the hands and the fists would fit in nice as well.
Well hope I helped, good luck with the game.
-Shadow Blade