I agree that the large dithered areas aren't doing much for the picture's general look. I'd also rework the lines especially on the left arm (as seen from our view) because they read as a bit squiggly currently. Maybe try tilting the angles a bit if it can make the lines cleaner and you don't want to AA for smoothness.

Lastly I'm not a huge fan of the foot. The 'calve'-area looks pretty uninspired, and the details mostly looks like bumps in the metal. I'd go for something more sectioned and chunky.

The "mouth" is really neat though.


EDIT: Ah, sorry, didn't see the reference picture at first, I thought it was your own redesign... Well, then nevermind my ideas on the feet; you're just gonna have a hard time translating the venty texture to pixels. If you look at the reference picture though, you'll see that the texture is mostly just highligted lines. Try going for the same color combo and you might end up with a less wrinkly look. :O

Also concering your perspective; looking at the grass, the hill and the mushroom, none of the three seem to be viewed from the same angle. I think if you're aiming to set the entire area in the same view as that hill, you're in for a lot of headache. There's a reason why most top-down perspective games ignore the slight perspective distortions and use straight lines for all the landscape sides.

Basically, I'd suggest you slant your camera downwards a bit by straightening the sides of your hill and working from that perspective instead... It'll be loads easier for you. 

Hello, everybody! Long time lurker, first time poster here. I guess you could say that I've had an interest in pixelation for a long time, but never really started to delve into it until just recently.
I'm working on a game using Multimedia Fusion 2 for school. We decided to make it a space shooter and I started out by drawing the hero of the game, a mighty spacecraft with the shape of a radical sneaker and the firepower of two deathstars! Oh yeah. Anyway, it looked like this:



Eventually, as I made more graphics for the game, I saw how my original ship was looking less and less impressive compared to the other stuff I drew, so I decided to touche it up a bit.
So here's how it looks now:



Anyway, I'm kinda happy with the improvement, but I'm feeling drained as of now. It looks kinda blurry and well.. all over the place. Just dunno what to do with it. I could use some pointers. ^^;;


EDIT: For some reason Tinypic transformed my pictures to .jpg... Sorry about that if it ticked someone off; should be the right files now. >_>