I've been doing a lot of work on the battle system. I doubt that anyone actually read my giant thread that explained the entire game, so here's the part that talks about the battle system:
The engine uses a tile based nav system (think the v6 engine) for a fast paced, while strategic, type of battle. Before your character's turn, you select the movements to take (basically you highlight the tiles on the path your character will take). The AI then takes it's move. Then, the battle begins in real-time, you and your enemy have 11 seconds to battle it out from your current positions (your character can only move within a small area around his current position in this phase).
Checklist:
Tile engine: done
The player's movement phase (highlighting tiles, collision detection, moving the character sprite along the highlighted path): done
The AI's movement phase: This is proving to be harder than I thought to make... I'm already at like 500 lines of code. I can most likely finish it it a week, but that isn't taking homework into account.