This looks like a front-view rather then a top-down view. I am going out on a limb here and guessing you want a top-down view. You need to squish his waist down, his waist is way too tall, as are his arms and legs. Get them all down to about 3 pixels in height or so.
Take a look at the sprites you are trying to emulate. Zoom in and study them, count the pixels they use for the arms, legs etc. You shouldn't have any trouble finding screenshots of RPG characters on the net.
