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Great questions! Thank you for asking :D

QUESTION: 1.) Does "No Photoshop/ Gimp/ Photo Editing software" means faces on VX Ace or other RPG Maker software aren't allowed? I think the only way they're usable is by up scaling them.

We discussed this and agree that up scaling/down scaling default assets from one Maker engine to fit in another is ok. I will add this to the FAQ

2.) You said that doodads can be used. Does that mean we can crop VX Ace tiles and place it in the doodads folder "BUT NOT" upscaling them to a 48x48 pixel size?

You can upscale :)

3.) Can we change the window size? Like, 1280x720.

Yes

4.) Are the free DLCs that came along with the RPG maker softwares "NOT ALLOWED"?

Freebee's that come with the engine (are automatically added to your files when you update/purchase the engine) are allowed, however if you bought the engine with a bundle including other DLC's, these are not allowed. Only the freebees that EVERY engine owner gets automatically are allowed.

5.) Does plugin that uses RTP only means "NO MOGHUNTER PARTICLE EFFECTS AND MAGIC CIRCLES"?

Yes, unless you replace every PNG with default PNG's.

6.) Are fogs and tree shadow images a NO-NO?

Yes

7.) Can we use Lighting System?

Yes, provided it generates the lighting with code, if it uses png files, then no, it's not allowed.

8.) Can we use screenshot of RTP maps made in the editor as Battle Background?

No (This is a great idea, but it falls under customization, since you're adding a new png file that didn't come with the engine, it's like editing default assets which goes against the spirit of the theme)

We WILL allow for rtp maps to be screen shotted and used as battle backgrounds. This is technically an exception to the rules.

9.) Editing sound isn't allowed but changing midi files into other audio format is allowed?

This goes along with up scaling/down scaling, the use of default assets from one maker engine in another maker engine is allowed, this includes converting file types such as MID to OGG.