hey
Looking at your latest update, I must say that it doesn't resemble the KOF style much at all.
I think the KOF style has quite noticable primitives in the way it's shaded. Well this is less noticeable in clothing, but I think you can kinda break the characters down into their primitives. I dunno, I'm no expert. The anatomy on the arm looks very odd, and the shading looks pillowy. Hmm, I think you should go for a distinct light source from above, rather than from the front.
Hah, been looking for a certain SNK/KOF character for the past couple of hours or so. Haven't managed to find it yet, takes ages on my slow 56Kbit dialup connection. Anyhows, I remember that this character shows what I think is the essense of the SNK/KOF style, so yea I wanna find it for ya. This character was like grey, with really big long arms, and bent/arched back, and was bald. Maybe someone knows who I'm talking about? but please, I don't mean to send this thread off topic, so if you know maybe you could PM me so I can confirm.
I think it's a great challenge to mimic the KOF style, as I think it's quite a brilliant style.
Sorry I couldn't be of more help.
editI don't mean to intrude on your workflow, if you have established one for pixel art. But I would advise that you complete your fighters design, pose and stuff before starting on the shading and such

. Ohh, and if it's meant to be a fighter sprite, then I think it's a tad too large.
cya