You have a lot of banding at certain areas. You can read more about it, and how to fix it here ->
http://www.pixeljoint.com/forum/forum_posts.asp?TID=11299Very saturated color for working background is not very wise idea, you should use some tone of gray instead cause it's a least distracting color (this pink hurts my eyes). Also colors of your character can use some adjusting. I think that you can achieve the same amount of details, with fewer colors.
If this is top down sprite, why is not top down when he walks horizontally?
I don't have the time for the full edit, but you asked about the hair, so this is my quick suggestion.


I would like to see your update, and if you have any additional questions feel free to ask.