When I received my game, I was disappointed to find that I was unable to continue on my file from Shenmue I into II. However, after all these years, I finally found out a way to get it to work. I found a program called Dream Explorer, and a tutorial on how to edit the Hex values of my save game to make it appear to be a UK game save, so I can continue on.
For the first time ever, I'm continuing a save game from Shenmue I into II, on the Dreamcast console itself!
By the time I finally got the Dream Explorer program burned to disk and got the hex values edited last night, it was already late so I only just barely met Joy, but I'm looking forward to continuing on.One thing I found odd was that only some things carried over. For example, the "Mysterious Scroll" was not carried over. I was hoping I'd be able to find someone who understood this scroll in the game, but it looks like that might have been left out.
Still, pretty cool that I get to have all of my moves and capsule toys!