First off, 46 colors is pretty high for a piece this size. You could do with around 20 and not lose any definition.
Quick and dirty edit:

I reduced the colors to 16 (with color depth in GraphicsGale, manually it would be a lot cleaner).
The biggest problem right now is the scales. They break up the anatomy too much, making your croc appear lumpy. I tried to address this on the arm in my edit, though my success is debatable. Basically, try to block in the muscle structure shading first, then texture the scales. With them all shaded the same way, they all appear to be coming forward off his arm, which is what makes it lumpy. I'm sure someone else here can do a better job explaining.

Other than that, his right leg is very noisy right now, and bits of his metal armor appear uneven or dented, making it somewhat look like stone (the bracers in particular).