Turns out I was a moron.

It was right after Dharma Tower and it was a scripted battle. I turned off the game before realizing that. :P I guess the battle is impossible to win because after I tried again last night and failed, a scene played out showing that that guy was SUPPOSED to beat me.

Life lesson: don't turn your video games off after you think you failed, because maybe you were just SUPPOSED to fail. :P

Of course, that being said the very next dungeon I went into I was totally destroyed by the bosses. I tried again with better tactics and was destroyed again. So... I think I'm back to where I was at in my previous post. :P I don't feel like level grinding. :/