It isn't explained on the badge itself (yet), but if you beat the game before badges were added and you're having trouble with the "Full of Hot Air" badge, just beat level IV again (the first boss fight & the place where you meet Glenn) and you will be given the badge.
I'm actually very pleasantly surprised. When I first saw the graphics and drawing detail, i had expected a mediocre game, but a lot of effort went into structuring this. I especially like the "Feed Slime" function. So many times in RPGs have I dreaded having to deal with useless monster drops, bu in this game, they basically work as lottery tickets. Brilliant idea. A bit of work on the graphics and drawings and I think this game could be one of the top 5 on Kongregate. Definitely one of the top 10 RPGs already.
The strategy that I've found most effective for challenge 4 is to set Shield to follow Dragon while the countdown is still in progress. Then, carefully and continuously command Sword to alternate between a slight left and a slight right of shield (but at a safe distance). This causes Dragon and Shield to sort of stumble into each other as Dragon alternates between routes toward Sword, while Shield just dawdles around him like an impenetrable mosquito. If you do this correctly, Dragon will retreat from Shield, soon ending up at a wall/corner. Dragon will then maneuver around shield and continue retreating, but he will usually face backwards to fire at Shield. Quickly position Sword on the opposite side of Dragon (he has to be fairly nearby for this to work), and Dragon will not "see" him in the blind spot. If all goes well, you can take out a little over half of his health. Get sword out of the way (before Dragon finally backs up into him) and repeat the process. Hope this helps :D +
Aside from being incredibly glitchy, this is a well-crafted, very enjoyable game for those willing to be patient with it. It does have the potential to become frustrating, but it throws a real-time-strategy twist to an otherwise monotonous puzzle genre. I'd rather like to see a sequel, and I believe that there is potential to continue developing this game concept into something very unique (and with a few modifications, it could certainly become a very strategy-based puzzle in addition to its real-time aspects).
Very nice game; I'd like to see a sequel, since the ending is a bit of a cliffhanger. Badges would also go really well with this game. It already has an achievement system, which incorporates well with the badge system, and levels are pre-grouped (also good for badges). 5/5 :D