[quote name='MagusZ']No way! this game is co-op lol how does that work. I didn't even realize it was co-op.[/QUOTE]
Yes, it works similar to the "Tales of..." games if you've ever played any of those (for example, Tales of Symphonia on the GameCube).
Basically, you have the option to set any of the characters to be controlled by a specific controller in battle (up to 3 player coop). You do this through the options menu (it's hard to see at first glance, but there is a second page of options if you hit one of the trigger buttons). The other controller needs to be on for it to allow you to select it.
Of course, there is only one main person controlling general navigation/explortion in the overworld, but the game is so beautiful and fast paced (for an RPG) that it shouldn't be an issue except for the most impatient of gamers.
The meat of the game is in the battles, which are 100% interactive (moving, attacking, blocking) so it is fantastic fun.
As a side note, this is the ideal couples game. If anyone was thinking of trying to break their significant other in to playing with them, this would be a good choice to start. My wife adores the cutesy-ness of the characters and she doesn't do half bad at kicking butt in battle either.