Here is a small preview of my game.

Hi Augs, I saw that some parts of the code that could be modified to read easier the code, like using "elseif" where it can be applied & adding a variable where you call the same chunk several times & so on. (There was even a crash when navigating up or down, due to being out of range in a table)

I've attached a file with the changes.

Thanks for the invitation. In general, I like to help whenever I can & have time to do so, but I wouldn't like to be counted as an active member of a team. So I would like to pass the offer.

I suppose that XMapCoord and YMapCoord will be used for "warps" to other maps (most likely using those coordinates as new points), but you'll be limited to a determined number (Currently 64 or 100, depending if you count the margins or not). Calling a map by an ID is better as you will not be limited by the squares & you still have the character's coordinates which you can then compare. Although as you say, I don't know how you plan on creating the screens (though right now looks like those Zelda games for handheld)

As for the string, I know is a local joke here, but never cared to read what is really about...

I updated the sprites. Now the houses look better.

Wow you're making good progress with this
P.S. The tree on the top right has a misalinged hitbox, you can walk behind the lower log, but not behind the second log. I suspect this should be the other way around?

Glad to see more updates

Hi Augs, I would recommend you to change how you store the images, so that you can reduce lines of codes when you look at them on the map (You would need to replace "..." with the actual string, I just skip it because is to long to post).
Also, you could move them out of the startup function you created & have them as global variables (well, that's it if you plan to reuse the "startup()" function to reset the game in order to skip recreating the graphics all over again...

platform.apilevel = '1.0'

---------------
-- CONSTANTS --
---------------
object = {}    -- C = Cobble, D = Door, G = Grass, L = Log, S = Dirt, W = Wood, X = Black, / = RoofL, | = RoofR, @ = Window, # = Leaf, ~ = Water, ` = Shop, ' = Post
object["C"] = image.new(...)
object["D"] = image.new(...)
object["1"] = object["D"]
object["2"] = object["D"]
object["G"] = image.new(...)
object["S"] = image.new(...)
object["W"] = image.new(...)
object["X"] = image.new(...)
object["/"] = image.new(...)
object["|"] = image.new(...)
object["@"] = image.new(...)
object["`"] = image.new(...)
object["~"] = image.new(...)
object["'"] = image.new(...)

frontObject = {} -- L = Log, # = Leaf,
frontObject["L"] = image.new(...)
frontObject["#"] = image.new(...)

And then, when you are painting them, you can use the following code:
--------------------------------------------------------------------------------
function on.paint(gc)
--------------------------------------------------------------------------------
  Doors()
 
  sprites(gc, object)         -- Background
  gc:drawImage(Person,(Xcoord-1)*BlockSize,(Ycoord-1)*BlockSize)
  sprites(gc, frontObject)    -- Foreground
 
end
--------------------------------------------------------------------------------
function sprites(gc, table)
--------------------------------------------------------------------------------
  for i = 1, #Map do          -- length of table -> 10
    for ii = 1, #Map[i] do    -- length of row -> 10
      sprite = string.sub(Map[i],ii,ii)
      if table[sprite] then
        gc:drawImage(table[sprite], BlockSize*(ii-1), BlockSize*(i-1))
      end
    end
  end
end
Edit: Joined functions when you paint something in the back and front of the character...

Which part you don't understand? It would be best to explain what the code is & does and use it (unless there's a better way than what I posted...) rather than skip it completely just because it seems confusing.

I'll explain the same code I posted earlier, if there's something that is not clear or you still don't fully understand, just ask :
platform.apilevel = '1.0'

---------------
-- CONSTANTS --
---------------
-- Since the images never change, I've moved them at the beginning in order to have them as global constants.
-- To store them, I've used a table, in where the key (what goes inside the brackets) matches the ASCII used for the sprites. This will greatly simplify the code when you look in the map for an specific sprite.

object = {}    -- C = Cobble, D = Door, G = Grass, L = Log, S = Dirt, W = Wood, X = Black, / = RoofL, | = RoofR, @ = Window, # = Leaf, ~ = Water, ` = Shop, ' = Post
object["C"] = image.new(...)
object["D"] = image.new(...)
object["1"] = object["D"]        -- This is just a reference to the sprite above
object["2"] = object["D"]        -- Same as above
object["G"] = image.new(...)
...
object["'"] = image.new(...)

-- Also, I've separated the items that will be painted on the front in another block
frontObject = {} -- L = Log, # = Leaf,
frontObject["L"] = image.new(...)
frontObject["#"] = image.new(...)
And the explanation of the second part of the code:
--------------------------------------------------------------------------------
function on.paint(gc)
--------------------------------------------------------------------------------
  Doors()
 
  sprites(gc, object)           -- Function for painting Background sprites, needs parameter "gc" for Graphic Content functions
  gc:drawImage(Person,(Xcoord-1)*BlockSize,(Ycoord-1)*BlockSize)    -- Character sprite
  sprites(gc, frontObject)     -- Function for painting Foreground sprites, needs parameter "gc" for Graphic Content functions
 
end
--------------------------------------------------------------------------------
function sprites(gc, table)
--------------------------------------------------------------------------------
  for i = 1, #Map do          -- length of table -> 10
    for ii = 1, #Map[i] do    -- length of row -> 10
      temp = string.sub(Map[i],ii,ii)
      if table[temp] then   -- Checks if key exists in the table before painting
        gc:drawImage(table[temp], BlockSize*(ii-1), BlockSize*(i-1))
      end
    end
  end
end
When you have a table, you can know its size if you use "#". Maybe that's the confusing part you have (since I had posted it before & you didn't included it).