This game is the exact game that I will teach you how to make in my RPG Tutorial
Notes:
The keys are:
arrows - move/pick options *when you walk down/left, he faces the wrong direction..the keyboard i made it with was broken so i didn't know
shift - select options/talk to npc
ctrl - run
backspace - bring up menu/exit options
Heres some pics (they're in bmp so they might take a lil while).