I know of the glitches/bugs. It's because right before I planned on starting to overhaul most (buggy and bad I might say) base systems, I decided to put up a release first.
You can almost always talk to Elm, only time you can't is AFTER having finished the Pokémon picking part. The shelves are completely loose from Elm's story and event...
The woman's spriteset is incomplete, that's why she flashes. Will be fixed next release.
The fat man... That shouldn't be, you're right. Sphere launches a talk function when a person is near someone, and I don't have a 'is person looking at the guy?' check. Might implement it in the new textbox system I'm working on, thanks for notifying me on that one.
So, next release you can expect overhauled and added systems rather than a lot more story added. I'm mianly focusing on the Pokémon system and menus for now. After that I'll overhaul the tile system, the textbox (so it runs at the same speed on any computer), and other minor system overhauls. You should know I started scripting this when I was still pretty bad at coding... :)