Also i think that when a battle with an enemy starts it should go to a separate battle arena and after the battle ends it could go back to the exploration so that the meaty core of the game isn't changed due to the combat.
In fact, that is exactly what I am doing!
To elaborate, in general (I have a few exceptions in mind), enemies stand still; when the player approaches within a certain distance of an enemy (I intend that this radius be visible to the player), combat is initiated and the game switches to combat gameplay, with the exploration level no longer visible. At the end of battle, the player is returned to the level. I also intend to be somewhat lenient with regards to death: at the moment it simply places the player outside of the enemy's activation radius, still facing the enemy; the player then has the option to try again, or look for something else to do (or reload a save, once that feature is in).
Oh and i think i may know how to fix the parry mechanic, wouldn't it be a better idea to have button that puts you in a block stance, but still makes you vulnerable and to parry an attack you have to be in the block stance and swipe the mouse forward while the enemy attacks?
Hmm... That does rather change how the player controls the mechanic--what would be the advantage over the current approach? I'm honestly not sure of what problem this is intended to solve. ^^; If it's for the "universal parry" issue, then I still hope that fixing that should only call for adjustments to the AI (there are a couple of variables that I can play around with).
I noticed if you sidestep several steps, then attack, the charactar side-steps back first to face his opponent.
I'm not entirely sure that I'm reading you correctly: do you mean that you side-step a few times, then attack, but find that your attack is made in the direction that the character is facing as you start the attack, rather than towards the enemy, potentially leaving you exposed to the enemy? Or do you mean that the character's orientation while side-stepping (but after an attack has finished) is incorrect?
If the former, then that is indeed intentional: I originally allowed the character to continue to rotate towards the enemy while attacking, allowing the player to side-step, and then, while still not facing the enemy, attack, allowing the attack to rotate into the enemy. However, I found this to be rather overpowered, and also feel that it makes little sense: turning while lunging would be very awkward indeed, I believe.
If I'm mistaking you, could you please elaborate? (I am a bit tired, so I may well be misreading you. ^^; )