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About the circle and the "bad" appearing on screen:

It's an active-time attack system. When your character is initating an attack on an enemy, you have to press a given button (not sure which, probably A) at a certain time to get extra damage on each attack. Each attack is rated under different scores - bad, fair, good, excellent, and perfect (or such). A decent way to spice up typical menu-based attacking.



Back from the dead, I'm afraid.