I couldn't get past the first area, my character went inivisble and nothing else happened.
Also, I don't have the image that the sequel would take place back on the island, something more like this;
Balrog flies Quote and Curly to the Helicopter, drops them off, and then returns to the island to become a nurse, Misery (Or Miza, whichever would fit better with the sequel) has gone off to explore the world due to her new found freedom.
Of course, when Quote and Co. get back, they don't recieve a warm welcome. Infact, the Lab that created them has been driven underground due to their activities (Attempting to destroy the Crown) and are currently working like a Robbin-Hood esque band of hero's.
Misery (Miza) doesn't know about this, and the major problems happen when she is captured by a Government of a certain country. They know about Ballos' story, and begin trying the same method on Misery in order to force her to forge a new crown.
Balrog, due to his connection with Misery, charges (in a comical manner) through the walls of the Labyrinth and sets off flying towards her location, but is shot down by fighters.
Of course, he lands near Tokyo, where the Rogue-Scientist's Base is, and Quote and Curly pick him up and learn about what has unfolded thus far.
I'd love to see a fan-game like this, mainly because it's my own image of what would happen
but I do have more that I could add to it. But it would lead to spoilers, which I don't want
.