This week I finished off the inventory icons, added lip syncing to all of the characters (although there won't be voice acting), and sorted out the majority of the room interactions.

I also finished off the cutscene that plays when you transition from act 1 to act 2.

The attached gif shows off the lip animations.

Truly a step up from the lip flapping. I tried adding random bleep and bloops to make it seem like they were talking, but it was kinda annoying and weird.