No Teena, Lily, Ice Princess or Otto.

New 'important' characters were Bianca's family, Blink's sister, Moneybag's family, some new dragons.

Basically, they think Red is the bad guy throughout the game. A character in a hooded cloak named "stranger" keeps appearing and helping Spyro. In the end, it is revealed "stranger" is a powerful blue dragon known only as The Sorcerer who was able to control the shadow realm (an evil anti- version of the dragon realms).

He had been using mind control on Red to make it seem like Red was the bad guy, but all along it was the Sorcerer. It is even possible Red was under the sorcerer's control dating back to AHT (that's left ambiguous).

In the end, Tomas forgives Red, allows him to come out of exile and re-instates him as an elder.

Meanwhile, the Sorcerer is defeated and disappears.

See...the old games DID have room for more story!

I hear Red is a good guy in this game. Was he a good guy at the start or did he redeem himself in the course of the game? If he did redeem himself, how? If not, was he still shrunk at the start of the game?

Any info on Red's role in this game would be a huge help.

Also, did the Ice Princess or Teena show up or was it just the main characters from AHT who got to be in this game?