Aaaaaaaaaah I love it!!! Sooooooooooo floaty and drifty. Can just see myself playing some kind of mystic/adventure/quest/fantasy game set in old villages, going around collecting magic potions and stuff.
The flute is great. The instrument that comes in at 0:14 is great (I forget it's name) - moody... intriguing, mystifying... inviting you in to wonder what this quest is all about.
Could suit Age Of Wonders come to think of it.