I'm glad I came back, I didn't know anybody had posted in here.
I'm not defending my mistake, but that's what it was, I dun goofed. In the very first iteration of the game, there was a longer sequence before you were knocked out by Jontel. In this time you had time to open your inventory, and see what you had equipped. It wouldn't have made sense for you to open it up and find "Damaged blade" before the battle, so I had the Gunthar there. I later removed that part of the game, making him instantly begin combat with you.
In the battle with Jontel, when he defeats you he damages the Gunthar. It is then replaced with "Damaged blade".
In all my testing, Gunthar was removed from my inventory so I don't know why everybody who has tested it so far still had it... ~_~
I don't know where I goofed there, but I'm guessing that right before I compiled the demo I changed something that screwed that up.
With the difficulty, I'm trying to make it medium. I don't want the bosses to fall over, and I don't want them to steam roll you. The problem I have with balancing a game (And possible others too) is that I play through any given level so many times, I learn the best strategy to beat the bosses without any trouble.
Also, graphical overhaul in progress. I'm stepping up all the sprites.
This is what they looked like.
This is what they look like now.