Even if you spaced everything out, it is still hard to read. Not because the words are jumbled up, but because the dialogue isn't spaced out properly. For example:
“Eh…How do you know about Red?” Professor Oak asked rather curiously.
The whole bit with Green was a bit random, in my opinion. He just showed up from nowhere, yells a bit, and then Clara cries in the corner. I suppose that would speak about their character, but it's still really weird in the first place. There also wasn't really much build up to Clara's reaction. The pacing was really rushed in this case. I don't think Green (or Blue, depends which canon you're going with...) would be in Pallet anyway. As far as the games go, he's never really at his gym, but he's not home either. He goes everywhere, like at the Seafoam Islands and whatnot. I would suggest starting the fic with a battle with Green instead. In that case, Clara could celebrate and ask Green where Red is. Then Green can do his scoffing and jeering and bring Clara down. That's just my take though.
So enough of the mechanical nonsense. That's not interesting. I will say that you should really look over some parts because you have commas in awkward places, dialogue bits missing punctuation within the quotation marks, and some of the wording is just weird. As Astinus has said above, I would suggest getting a beta reader if grammar just isn't your thing.
Your description is vivid at times. You describe a scene with a few words but your word choice is good and it creates a clear picture. On the contrary, what the characters are actually doing seem to be repeated actions. Most of them have something to do with their hands or their eyes. The characters' actions aren't really informative, and some aren't necessary. For example:
And that pretty much concludes my review. I hope I didn't sound so harsh. I'm too tired and I feel sick. Actually, I am sick but that's besides the point. Try brushing up on a bit of your wording and sentence structures. I noticed that a few of your sentences sounded the same, so you might want to spice it up a bit. Your characters could be expressed more vividly as well. Just try not to incorporate physical actions too much. That sounds really backwards, but you can describe characters with their thoughts rather than them fixing their hair.
I'll stop here and I bid you adieu.