Pushing out some more progress.
http://i138.photobucket.com/albums/q255/Venks428 /BookRead.png
All of the items in this room can be examined. Including the books on the floor which will give you small excerpts of the stories inside. It took a bit to make the dialogue text pop into the middle like that. I kept making a bunch of silly mistakes. The biggest one being that this format is accessed when ever I call the 'write' function with the last argument equaling two. I continually made the argument equal zero at first as that is the default. So basically I was never calling the other format I had made. Oh silly programming woes.
Perhaps you noticed that Terrich's cloak has turned yellow?
http://i138.photobucket.com/albums/q255/Venks428 /Lembton.png
It's all part of a feature I implemented. Terrich can lock into ethereal signals and his mystical robes provide a visual cue for whether or not you are getting closer to the source. Basically by playing hot or cold you can find objects or places that have recently been haunted. If you keep on top of these trails it shouldn't be long before you've solved the case.