blumunkee, and ndchristie, yes there was some banding/pillow shading going on around the hips, but I didn't think it was that noticeable. My current stab at it (see above) should be an improvement. Although it corresponds to reality and the references I'm using, the lower legs were indeed a bit too dark and pronounced. I have to remember I want to go for a symbolical representation character style, and not a realistic one. ^_^ So I lightened them up and gave more distinction to the knee. As for the colors, they will be palette-rotated anyway (to make Asian, African, etc, characters) so they're less of an issue now. I'll optimize them once I really can't improve the shapes anymore.
Scriblette, I moved the knee up one pixel and it seems to come out rather well there. Nice find about the navel, it was too high up by 1 pixel! I lengthened the arms and torso by 1 pixel, but I forgot to shift the navel down. In my latest try, I shifted the navel down again. I'd love to see your try, so, please do make that thread! ^_^