Hmm.. By the looks of the Demo (1.2) there isn't much progress completed. Some comments:
1. The is still the movement glitch. (Link can move backwards while facing forward after a combination of arrow keys are pressed)
2. Nice, ST music.
3. The sound when link goes downstairs is kinda annoying, but that's just me.
4. Need to fix music looping in the house and outside.
5. Story intro is much better than before, nice work. I haven't checked for grammar/spelling errors, but I'm sure somebody else will point any out if there are any.
6. The Credits still need work. It looks batter than before, but I still think it (the layout) doesn't suit it well.