Does the Tintinabar's walking healing ability heal the party by default?
No, the data suggests that it does, but it was hardcoded to heal only the person wearing it. That's why I made the two patches, because I wasn't sure if I should limit it to the wearer or go with what the data suggests and heal the whole party. It's still pretty useless, but at least any item can use the effect now.

Would the "Free C2" patch cause any conflicts, or does it just create free space? I read that it moves any JSL calls to the routine in C0, but I wouldn't know if any patches produce calls to the C2 routine.
It's there just to free space in C2 for patch authors to snatch it up for more bug fixes (or other code). The patch repoints some JSLs to look at the C0 decompression routine instead, because the two are the exact same, but C0's lacks 2 instructions which I added. It should not cause any conflicts, because I'm not touching any existing free space. It will depend on if any patches move or alter any of those JSLs, and I believe none do.