He sees you when you're sleeping; he knows when you're awake ...
He knows if you've been bad or good.
Just playing with the base game:
1. Let's say a character is carrying a sword, the armor is on the tile in front of him, and he wants to swap sword for armor. Can he make the swap as he passes through the Armor tile (like trading with another character)? If yes, can he also swap sword for armor if he ends movement on the armor?
2. One blue character attacks an orange. Another blue character is brought in automatically because of the adjacency rule. The orange character wins the combat. Are both blue characters now wounded, or just the one that initiated combat?
1) Picking up and dropping items is a free action - please remember that a character is assumed to be using any item in its square, so you can't stop on the armor of you're carrying the sword and vice-versa. You can swap as you walk through the square, but can't stop there.
2) Yes. Both Blue are wounded. Group combat is potentially fought for very high stakes.