Great job on the visuals, animations, and overall feel of the controls! Everything looks very polished. However, I ran into a bit of trouble with the combat: my fireballs seem to pass right through the enemies without dealing damage, and the enemies themselves weren't attacking me. Not sure if I missed a mechanic or if it's a bug, but I'd love to see this fixed because the foundation is really solid! Keep it up!
By the way, you can hide that VSM warning in the final build using 'DisableAllScreenMessages' command or by tweaking the shadow cache settings!