You ought to make it clear on the game page that the game is unfinished. I played to room three, where I was walking inside the walls and things were very clearly not done, but I had to see your reply to a question to get a confirmation that that was it. Anyway, a demo is acceptable as a jam entry, it's just nice to know what it is.
If you want a lot of banter, Monkey Island style, then you need to let the players click the text away, otherwise, waiting gets old fast. There also seems to be some glitching when you use some verbs, because they may stay on screen after an action, making mouseover useless until you have performed another action. That said, I like the initial idea of Gareth and the talking sword, and there are some funny lines in their dialogue. And, being an old git, I second umeboshilover's request for a larger font. Nothing worse than missing out on jokes, you know.