I think all she's really saying is how much it tickles, laughing, stop it, et cetera. Some stuff I can't read, but that's the gist of it. As for this character, I believe this is Mara from Dragon Quest 4. Her class is 'Dancer', hence the frequently skimpy outfit. (She uses nice attack magic but that's not the point. >.>) Anyway, she and her twin sister are out to avenge her father's death and, as a result of this, join up with the Hero (you) to find the head bad guy and bla bla bla save the world and so forth. (This was an NES game as I recall and it tends to be slightly skimpy on details.)
Sometimes in the Grey pictures or other artwork you will see a woman who looks similar but dressed more, this is her twin sister Nara who is a Fortune-teller. Unless I got those names backwards.