Also, using melee weapons against flying enemies is not exactly effective. Harpies get a big Evasion bonus against your attacks; try a thrown or ranged weapon when fighting them.
There's no "correct" end. They both end with somebody getting fucked over.
Unless you bring Siegwulfe anyway. But I guess getting bodysnatcher'd fucks her over, so.
Probably not in the same way as in CoC1, but it's very possible to insert pre-determined art into the text box. I'd love to have some CGs for various scenes, but that sure ain't in the budget right now :P
Yeah, the character sheet and such aren't implemented quite yet. You can see what the stats and status effects do here. Specifically, Willpower reduces incoming mental (eg. Lust) attacks and increases your Spellpower.
The PC will have only a character level. You can swap classes at-will, but...