Terley, I appreciate the edit, though that color reduction seems to have removed a lot of the softness of the original sprite. Stylistically, every character in the game I'm making has one innate color and the use of grays in their palette, as well, I'm going for a flat cartoony look, almost like if the characters were drawn in adobe flash.
I've added a screen-shot so you can see what kind of environment these characters will be in. Obviously it's NPA, and the the background panorama is a placeholder.
Also, here's a larger npc. Like i said, every character has a main 'color', and this one's is gray.
C+C? My focus here is the characters, but even though the tileset isn't pixel art all comments are welcome.