Those legs looks to be done from Bass MM7 Sprite.
The eyes and the most of the sprite looks to be drawn or edited from MM7 on a closer view.
Ah the good old days. ^^
Let's begin with a small bone edit to give you an idea.
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This should give you an idea of what you could change, the base of the limbs needs a change.
The legs/Torso size is fine within the standards of "Stylized", but the arms needs to be redone a bit, an idea for you is to stand up and then let your arms hang down on your side, this should give you the anatomy hints on how long the arms really should be.
Another thing that kinda gives me a weird feeling is the size of the head versus the rest of the body, it looks too "thin" compared to the more beefy legs/Torso.
Begin with the arms abit and then show what you have.
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If you're knew, starting on 16 bit sprite is quite a challenge, but don't get discouraged.
It's better to start on actual sprites instead of going for instant scratch.
Gives you some good hints on what to avoid as well. From my own experience when I started doing sprites back in the days of BnG Comic 10 years ago.
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