For every cool thing it lets you do, there are at least 2 other things hampering you.
This installment lets games be made in full 3D, which is a step up from the previous games. Unfortunately, the options for customization are severely limited. Every character has to have both a 2D picture (shown when in conversation) and a 3D polygon model. The problem is, there are multiple styles of 2D art, ranging from anime to traditional hand-drawn, but only ONE style of 3D character, with 3 palette swaps. Finding two that match is hardly fun, and often you'll be forced to either choose a style of 2D art you dislike, or throw consistency to the wind.
That said, the new styles and character types (such as lizardmen, ghosts and...um...blue rabbits) are cool. Sadly, many of the coolest ones are restricted to enemy monsters.
If you can figure this game out, something really cool could be made. Also, a USB keyboard will save you a lot of time.