That is what I used as a reference yes. Sorry, I probably should have posted that too.
Thanks for the tips! 
Oh, and I wasn't using any particular palette. I didn't think that was too important.
edit - I'm very very new at sel out. Am I doing it right?

Almost. You're getting there. It reflects the official style a bit more. Maybe I should be a little clearer, though. First I want to know how close to the official style you want to get--really close, with many elements seen in official sprites (see my last post in this thread), or just resembling it somewhat, with just a few?
If you do want to get that close, perhaps make the outlines warmer to reflect warm colors (this is a fire Pokemon, correct?) like in the official sprites' palettes. Use some intermediate colors to blend the outlines, just slightly, by a few pixels so the transition from light outline to dark outline isn't so sudden. And try not to make black outlines so apparent, unless the area is completely shaded. Sorry if that wasn't clear enough. Sorry if the whole post isn't clear enough. You may want to take a further look into my edit and the sprites.
Also, people seem to confuse sel-out a bit nowadays. Sel-out (stands for selective outlining)... Isn't so much making outlines touching lighter colors lighter, (I assume to give the appearance of the lines being thin even at a very small scale). It's more like anti-aliasing towards a dark color on the outside of the sprite where there's a light background. To avoid starting another opinion-based argument I'm going to quit talking about it now. We have too many already.

...P.S., I still think you should redraw the legs.