Another demo update! We're posting build 3.07 of the demo. We hadn't really planned on another update to the demo while we're working on chapter 1, but we uncovered a pretty big bug with the combat formula.
Essentially, all of your characters were a -5 to hit and damage because of the formula that gave the character a penalty for using an item you didn't have the skill for. I wasn't in love with this mechanic, so we removed the penalty, and now you are just not able to equip an item you don't have the skill to use.
There's also a few more updates:
fixed -5 to hit and damage for melee (and possibly ranged) attacks
characters are now unable to equip items they don't have the skill for
Added a few new small (and currently empty) villages
A few new NPCs to talk to