I did not lose a single character in VC. You can save between battles and between turns as well (load times are atrocious), and I used this frequently to line up sniper shots and for risky maneuvers. Some of the battles could have been better designed (I'm talking about the race to the finish area ones), the story kinda drags in some places, but overall it is one of the best PS3 exclusives and a great SRPG to boot.

Definitely pick up VC2 if you're interested!