This is looking goodso far, and it seems to fit the 'style' you've gotten started wiyth your avatar, but it looks somewhat pillowshaded. Try making another version with a lightsource in an extreme corner. As for the arms, don't give them outlines. Use a few pixels of the darkest color on the shadowed edge, but as bits get smaller, so do the amounts of pixels of each color. Try giving him really long fingers like a gecko or adding a bionic claw maybe.