Excellent works on the tiles and the sprite here, I really dig your style. I do however prefer the palette edit with the blue sky as well though. Sometimes it might be better to use more regular colours. One thing I'm not too fond of is the smaller tree, to the right of the large one. I can't really make out any detail in its leaves, it just lookes like a random blob of greenish pixels. Same goes for some parts of the grass. The mossy rocks on the other hand are awesome again. Anyway, finish it!