I've beaten the first demon on the rooftop of my apartment building in Omikron.
So far I'm loving the game, but it's such a problematic piece of software. The controls don't work as they're supposed to on XP so I installed it on my Win98SE partition. It wasn't a perfect solution - after just a few minutes of playing the background music would cut off and the game would start stuttering like crazy. Of course, saving the game and restarting the application is not an option because of the stupid, stupid save system. So out of desperation I downloaded a no-CD crack, but it turns out it doesn't work, the game still requires a disc to run. However, the stuttering and sound problems seem to have vanished!
The fighting is very easy once you figure out it's better not to use any of those fancy combo moves - just punch the enemy as soon as it puts its guard down. Repeat a dozen times and you win. The FPS sections are still very awkward (the controls are
way too sensitive), but they're manageable.