Heh. I got Kuds.
Nice, nice. I like the style. Mind if I ask why you're so withheld when it comes to colors? Are you used to making Game sprites, or are you just cheap? I'd definately suggest changing the contrast between Gene's shirt and the water, and perhaps brightening Mugen's shirt to bring him into the foreground.
If the water must be animated perhaps to a lesser extent? Just 1-2 horizontal pixel motion per line, maybe?
...
!
Yeah, now I see...They remind me of the Samurai Champloo versions of the River City Ransom characters...Man, I loved that game.
Anyway, good anim, and fun to watch.