and how was you supposed to work out which direction to move the joystick - was it just trial and error?
Certain objects/floors of the screen will flash, and depending where it was most on the screen (to the left, right, up, or down) is the direction you hit on the joystick. If your sword flashed, then the action button was hit.
Least that I recall anyway.....should go boot-up my PC copy of Dragon's Lair2 and have some fun, there's not another game out that starts with a hero getting booted out of a house with a fat lady chasing you all over the place screaming her head off because her daughter is missing.