Also I noticed that you cant use custom character sets. Every time I use a custom one It isn't visible. When I choose a battler, it shows the character sets battler. Like when I use a custom sprite and use fighter01 battler. The fighter01 sprite is used instead.
Does anyone els see that?
The reason it does this is because I have it use the battler sprite name to look in the char sprite directory(this is exactly the way that nick does it in his as well) To get around this I would suggest you import a blank battler sprite of the same name as your char sprite and it should work just fine. Just remember, that anytime you update their look that you need to update both the battler and the char sprite.
When the battle starts and begins to scroll. The music stops and it just shows my character. Doesnt give me any options. y is that?
Not sure, but I have a guess.
1. Your battle start event you showed on the screen shot... is it by chance setup to AUTORUN, and if it is did you set a switch and create a second page for PRESS BUTTON? If you havent done that second setup it will appear to "LOCK" the game as you mentioned. This will happen on the event if you do that as well. Point is though, that map events still could interfere with the battle hence you need to make sure those are closed up.
You set a victory condition that is met before the battle is fully ready to go.
you have it set on TEAM mode and it really isnt locked, you just need to click enter when the cursor is over the player to select them to start.