[quote name='navalg1337']Thank you.
Any suggestions/ideas for familiar setup with both characters? Just finished the volcano area.[/QUOTE]
I'll reiterate what others have told me and have helped me a lot (and this is long after I left these areas), and some of my own experiences.
1. The next area you're going to will have Purrloin (or something like that, it's a cat with a knife) and Monoliths (robot tombstones). Catch both. The Purrloin is like your Mite with lower defense, but attacks much faster. After leveling it, it's pretty fierce. The Monolith, after like 10 levels, is basically invincible against physical attacks. It doesn't have much of an attack or magic defense but for most fights, he's great to have as a tank.
2. The next ally you get (in about a few hours) starts of with the crappiest familiar... trust me, I spent 28 levels with it and then dumped it. Make sure you train a familiar for him.
3. The sprite (little fairy you got in the forest) has terrible attack but later on, its high magic and super fast movement speed makes it a fantastic healer and magic attacker. The monkey and the penguin are pretty balanced, with the monkey having more of a focus on attack power/speed and the penguin having higher defenses.
I'm sure others can give you more in depth feedback.
EDIT* Oh, and catch one of those sun familiars... you don't need to use it, but it'll be important for a quest later on (much later on, but it'll save you a trip).