Arne, just to add on something - the Tanuki suit is not a statue power.  What it is a mythical raccoon-dog native to Japan.  To the Japanese these were seen to have powers of transformation and magic, including disguise.  The suit is a magical raccoon-dog and has the added power of transforming into a statue.

If you took the statue thing too literally, it would be a digression and lose the character of the suit.  A better idea would be to elaborate on the transformations I'd say.  
Watch Pom-Poko and you'll see what I mean, just look on youtube or read below:
http://en.wikipedia.org/wiki/Pom_Poko

To add something more on-topic (to pixels), I can't help thinking that the smaller brick blocks and corners need a change of highlight.  The current highlighted layer looks too seperated imo, plus I really think the little bricks could benefit from a pixel or two of highlight on each.

What do you think?  Oh, just another note - the Eskimo suit someone referred to is a Hammer Bros. suit, it's just only found on the ice level is all.  It would be great to see your ideas/approaches on new suits - or using older suits from other SMB games, like the cape or bunny ears etc.  You've got the vehicles so that could be really nice I reckon

Wow, this is a really nice idea and an awesome attempt.  Something about some of the black outlines seem to jar though.  It's like the black is too harsh but I don't see a way around it either.  The darker ramps were already used in SMB1 so that defeats the object and goes without saying (but I've mentioned anyway)...

I wonder if looking at some Gimmick! screens might be useful, as the Sunsoft artists used less black there and got a similar result.  

http://www.vgmuseum.com/pics5/gimmick.html

It's the best example of similarly stylistic pixel art on the NES/Famicom in my opinion, so I hope it's a relevant suggestion.  The clouds in particular are top-tier.

I can't believe I didn't even notice that...    Mic, volume slider and no start or select buttons  

I was going to suggest making the gold foil on the controllers more rounded, do you know what I mean?  But then, the whole thing has sharp edges and I think it would detract from the low spec aspect.

If you really wanted to make it stand out, you could always give it square buttons like the first editions

http://www.retrogamingconsoles.com/wp-content/uploads/2009/10/famicom-controllers-original.png

I'd like to ask - are we sticking to the 2x2 block palette rule? 
I laid out my mockup last night then realised I hadn't adhered to it and all my favourite parts had to be changed as a result.
It's no bad thing necessarily, as it actually means I'll dither into black much more and it'll hopefully look more consistent with the theme.

I thought I'd ask in case we didn't have to stick to it - and early enough to save people having to change theirs down the line..

Sorry to nitpick, but the Japanese one definitely came out first.  Natsume made the game with the Solbrain license in Japan and it was then localised overseas by Natsume US for the NES.  Like I said, sorry, but Famicom games are my thing.  Though saying that, in a lot of ways Shatterhand is the cooler version.

Still, would it be a problem for me to use that?  It's only the main character really so I can make two versions either way.  Glad to know there's no time limit!  The last one took me ages..