It looks good, sorry about the alignment. I suppose all my messing around threw it off. If I had it to do over, I would have just put the bones in with it straight up and then tilted slightly afterwards, but you know how that goes. Hindsight is 20-20. It was a good experience and I learned a little more about the new Blender. Not really that new anymore since they changed it at 2.5 and it's at 2.61 now but I'm a little slow catching up with the changes, especially animation. They have a y-up export option for it now, also, but I didn't see it till after I sent the first one and didn't want to mess you up even more. I'll have to look at it some time and see how it works.
I didn't know the arrow end would be visible that close up. I should have put a slot in it, but I suppose that would have made it even harder to align. I'm a minimizer when it comes to polygons. I could rework it if you want, but I imagine you are pretty sick of it.
Anyway, it looks good. Looks like it's going to be a really fun game. I think you have the right idea with the dungeons, also. You can put the most variety in that way for the least number of poly's.
If you need anything else, let me know. Nothing else should lead to quite that many problems.