Three updates for this round:
Wpeeps can now follow other wpeeps. This will namely be used to create the party following system. When a new cat joins your party, it can follow Tandy around. I created a simple test level to show this off.
I got Graphics Gale working in OS X! This is fantastic news to me as pixeling on the Mac is an incredible pain in the butt. Many people suggest Pixen, but it's simply not there yet as a pixeling tool. And Photoshop, while an excellent pixeling tool, costs too many arms and too many legs. Adobe does offer old versions of Photoshop CS for free, unfortunately, CS2 is PPC only, and Apple effectively killed that with OS X Lion.
But back to Graphics Gale. I got it working under OS X using Wine / Wine Bottler. Simply download the executable (trying out GraphicsGale's new beta), create a new Bottle with Wine Bottler (do make sure you have X11 installed) using the Graphics Gale installer executable. Bing bang boom, you're done. Open that up. It was a bit tricky to find my working directory folder, but otherwise, it's working just like what I'm used to.
Lastly, you can now add party members. Implementation was pretty straightforward, and it'll allow the new story rewrite to happen sooner.