Yes, but no upgrade option for the armor/clothes.  In this game, you can only upgrade weapons.

Yes, it even reflect in the cut scene.

You change armor for the head, arms, torso and legs. You may even find some armor in game which is for females only, so that also brings more diversity to the game. Armor not only reflects on your appearance, it also affects your movement depending on how much weight you have EQUIPPED on you, but there's also a stat which you can only notice when you try different types of armor: Starmina Regeneration Impact. You have a Stamina bar which refills automatically when you are not melee-attacking/running/rolling (it refills while blocking, but slowly), and the time your stamina takes to refill depends on your armor.

There are different categories of armor and each one has different stamina regeneration penalties which aren't necessarily related to their weight. For example, the Old Raggedy Gloves weigh 3.5 pounds and their stamina regeneration penalty is the same (very low) as the Plate Gauntlet. Later on the game you can get a Ring of Strength which boosts your Equipped weight capacity, and greatly helps you to stay unemcumbered and agile even while wearing some very heavy armor/weapons.

However, your stamina regeneration is still a complete different element you have to keep an eye on, regardless of your equipped load, and you have to take that into consideration depending on the type of character you want to play, your fighting style, and everything . Are you going for the big swing with a heavy stamina-consuming big sword/axe? and rely on your physical defense/shield block, or will you prefer having a quick stamina regen so you can tumble around as much as you like and still be able to "stick and move", sneak attack, keep your distance and blast with magic, or maybe a balance between agility and melee power? It's all up to you!

Wow. Thanks for the information. I will definitely be getting this game now. I love equipping armor and customizing my character.

One more dumb question: the combat in this game is real time?

^If you're interested in the OFFICIAL Guide, then you should wait and buy the DELUXE Demon's Souls version. That one will sell (and it's been pre-ordered) for $69.99., it also comes with a slipcover. If you pre-order any US version you also get a bonus soundtrack CD and art book (limited quantities for these, not ALL pre-orders will get this 100% guaranteed). The difference between versions (the Asian and the US version) are minimal, mainly grammatical corrections, some words changed here and there, nothing major. The US version will only be able to play online on the US servers (instead of the asian servers), so if you care about that, well now you know. Also, the US version won't be able to use saves from other versions and viceversa. There you go, make up your mind, and get the game, whatever version you choose you'll be getting a great one, and the best RPG this year for any console.

NCSX said:

Update: August 24, 2009
Demon's Souls is sold out again. We expect to restock again within the next 1-2 weeks. Demon's Souls has surpassed Metal Gear Solid 4 as our top selling PS3 game ever since the console was released a few years ago. We'll probably sell a few copies of the domestic version as well so cumulatively, Demon's Souls will probably stand in position as our top PS3 seller for the foreseeable future.