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I just realised something.. I've been coming to these boards about 3/4 months nopw and become a (hopefully) helpfull and active member of the community and I've never introduced myself..

So hello, I'm Scuthbert and I have an alcohol problem I'm new here!

[Sprites]

Sprites
For sprites you just simply draw the overhead view of the character.

Items, Powers, Weapons etc....
For displaying items, healing powers, weapons, etc you can use an inventory or if you want seperate inventorys for each see this thread.
The same theory as above could be used if you want a pokemon style game where you collect monsters, just have a new inventory with the monsters in.

Keyboard Movement
And of course if you want classic gameboy RPG feel you want the character to be controlled by the keyboard,  here is a usefull thread.