The Gray patch must be some type of transparency issue I guess. The bird itself has a nice smooth texture to it, and I can't wait to see it colored. Now on to me bieng a jerk:
I find it strange that his man-boobs, or the whole chest really, seem to be separated from the rest of the body, by that strange dark outline. If the look was to give the bird a little bit of sexy, saggage to the pectorals, I would slowly disinigrate, or blend(or Selout I suppose?) the mid-chest black outline into the brightest white you have shown.
I also have noticed that there is a round circular shadow on the birds chest. My best guess is that the head is causing this shadow. However, if the beak is as long as it is right now, and if certain areas are bieng affected by some light source, then shouldn't the shadow be longer towards the middle, mainly casted be the beak itself? At the moment, it seems like a normal head is causing the shadow on the chest. Then again, you might be going for something different, so I could be wrong. That, and I also get the feeling that his left leg is longer than right for some reason...
But again, this could be due to the fact that it's still in a grayscale period. Would totally love to see this guy in whacked out colors, sorta to parody the c64 Yus character though!..