Well, it's ok, but it could use some touch-ups.
First: dialogue in the middle of the fight is just plain annoying. Lost of dialogue is even worse. If you show a fight scene, it'd be appreciated if the characters didn't keep spouting out cliche dialogue every time they make an action.
Second: Your sprite manipulation is great. Much better than your beginning work. However, Final Fantasy had something these didn't: numbers. You could tell whether an action was a scratch on the cheek or a sh**load of damage. Your fights just leave people guessing. If you're gonna imitate Final Fantasy in a flash, it'd be nice if we could get some reading on how much damage a person has just taken.
Third: Your dialogue is ok. Not terrific, not bad, but ok.
Fourth: WTF was the point of the general? For one of Kefka's "best officials", he put up about as much fight as a stuffed dummy. Seriously, the squid put up more of a fight than he did- and that's sad in any context. He was nothing but a useless ploy to spout more dialogue. Next time, could one of Kefka's best actually put up a fight, instead of dying at the drop of a hat?
Again, it's nice to see your work improving, and I think that your work is commendable for getting where it is, but it still has lots of room to grow. Little less conversation, little more action, please... and I bet you don't know what song that's from. :p