Okay.
I'll start off with the good parts. The artwork is nice and the story isn't too complex. You made good use of transition effects and it looks professionally made. I like how the forest becomes more visible the more you move into it.
Now with the cons, and I know it is just a demo, but you have things to fix.
-Optimize your flash. The game runs at about 6 FPS even on low quality, and I have a 2.6GHZ computer, so it's probably even worse for other people. There is an option in every flash tool above MX 2004 called "Optimize". It makes shapes less complex and lowers quality a bit, but sacrificing graphics for gameplay is better than sacrificing gameplay for graphics, right?
-Battle system. It's nice, but again, laggy. Also, it's not original either. People won't want to play a game that doesn't have originality. This is a problem with many RPGs available today, they repeat themselves to death. Maybe you can make some attacks take strategy, like making people do a button combination in a certain time period to pull off the attack, or make them do something else, I dunno, it just lacks the appeal for me to play it more than 10 minutes.
-Character Model. The one on the overworld looks weird, he barely moves his legs when he moves. Maybe put some pizaz into him or something, he's too dull ATM.
And again nice job anyway. I know it's just a demo but you have much to improve before releasing it. And check out my games too! Maybe we can collaborate some day!