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I agree very cool start to this game but I was also confused as to how to continue from the first area. Now if I'm understanding you correctly there is only ONE area (Kabula) with the little town in this version of the game? 

The river, forest and Kabula, yes. The world will essentially be a one area which will be a much bigger world with different locations. I was so used to calling it regions because these are 64x64 maps connected to each other to form the world, in case of this demo there are 4 of such regions but they may be perceived as a single map.