Someone’s got their wires crossed, because Arhu says two mystery cloaked people entered the inn room, and then later a woman did, after which there was a commotion. Jake says he entered a room with two people. Did Arhu confuse Jake for a woman, or did he miss Jake entering and the woman was Evelyn, or is Jake’s dialogue wrong?
The AP point reduction for Intelligence is either not working, or requires a ridiculous amount of points. Even with 10 Int, my spell costs are the same. If I need more points to reduce the cooldown, there's no way that I'll be able to get more than 1 or 2 points reduction.
Chain Lightning (9 Int, 3 Air Elementalist) and Infectious Flame (10 Int, 4 Fire Elementalist) are really overpowered, one-shotting level 5 enemies. I think that those spells should not do much more damage than the same level Blitzbolt and Flare would: the benefit of using them is that they can do that same damage to multiple targets.
The graphics of Infectious flame need a better look. Right now it’s the same as Flare, and that's really no good. The icon shows a narrow band of flame bursting through targets. That looks cool, make the graphic like that instead of Flare.
The Undead need higher resistances, to encourage appropriate weapon selection. Right now I think that they have about a 15% slashing or piercing resistance, and that's not enough to discourage me from laying waste with Madora's huge starting sword.
Related to the above, please add in two-handed Crushing Damage weapons, and Dexterity-based, low-damage, 2 AP "Blackjacks" which you can 'backstab' with, to supply a source of crushing damage to backstabber types.