@Bagool - Thanks for cleaning this one up a bit. While SQ2 is definitely newer and more robust, SQ1 still has some charm of its own. I like the concept of a powerful warrior hiding in plain sight, it has some great dialog and memorable characters, and the Ghost 'n Goblins theme always puts a smile on my face.
@Harold69 - After you help the cat-girl, leave your house, then go back in and check your dresser upstairs. (I tried to spoiler this, but that doesn't seem to be working for me. Apologies for any spoilers.)