I've updated the game again and tried a different format for the sprite.
I hope this resolves that issue.
Viewing post in My Time At Etheria [Demo] comments
I found another person using windows 7 and he tried running the game, it seems the same thing happened with the black square over the characters. I've ran the game over windows 8 and another computer running 10, and all seems to work except for windows 7. Sorry, about this, It seems I'm unable to fix it, if it's a OS issue.