One cool example is a boss that can render your characters indiscriminate killers. This is represented, amusingly enough, by a swirl symbol placed overhead. The use of items is also important in battle. Potions and other items also restore hit points as you would expect. The battle's never lost as long as one of your characters remain, but losing a teammate's special abilities and attack turn during battle really hurts your chances of success.
Magic attacks are truly cool due to the variety and timing.
When you choose a magic attack, it takes longer to execute than a standard weapon attack, leaving you vulnerable to hits from the enemy which could change the structure of battle. Of course the pay-off comes via the increased damage that magic attacks pack. The best thing about the system is how it makes almost every battle a fresh experience. Versus other games where you'll run from encounters to avoid another dull exchange of strikes, the dynamic battles in Grandia II will impress you and have you looking for a fight. That's important, because the other great joy of Grandia II is the upgrade system.