AuntIggy: Great! Glad you got it working

Equipment can be equipped -and items used- by clicking on the stat button, as Alikamou said. You can also press 1,2,3, and 4 number keys (at the top of the keyboard) which do the same as clicking on the buttons at the bottom (Use, Stat, Zoom (which brings up a mini-map) and Menu).
Armor does need to be equipped from the menu (and it doesn't last forever, so... be careful!), Weapons you can switch during battle to the best weapon you have for the monster you are fighting (at the top there is a +, -, = sign which means strong, weak, and equal power).
Alikamou: Wow! Good ending on the first try, very nice!

Glad you enjoyed it! Now you can put a few of the pieces together in Arvale: Treasure of Memories

You ready to take on Arvale II? If you do, there is a walkthrough here:
http://bit.ly/are2kQ 