Derk?
-ahem-
The progress is always a good thing to show, a few things I'd like to point out are..
First and foremost, your shading. Many, many things i'v done have started with that ugly term pillow-shading, which if you don't already know, is shading from the center out. (Assuming there is a light source between the viewer and the staff, as someone put it) Its generally looked down upon and its much easier to get depth from other angles of light.
The decoration popping out from the central part of the shaft seems a bit excessive in my opinion.. If you were holding a lifesize version that piece would hinder and annoy you while wielding the staff, unless you were just using as a walking stick.. But who would do that with a neat staff? ;p
The palette for the crystal ball should have more contrast and you don't need 6 different shades to show blending. Because its a spherical shape you should probably use a small dither on it and be able to achieve a nicer result.
Overall, you should really do a color count on that. Basically, the lower amount of colors you have the easier it is to control your piece in shading. Anywhere from 3-5 shades per color on smaller pieces works for me, although some more experienced people may want to help you out in that department.
One last thing I'd like to point out.. There are "perfect" pixel lines.

This is an image from the tutorial:
http://www.pixelfreak.com/tutorial/This shows the perfect lines in pixelating. These lines will come out the smoothest and will generally look alot nicer. If you're near these but not quite on them, you'll end up with jagged lines.

Inside the boxes are jaggies. ;p
Well anyhow, I hope some of this helps you out. I look forward to an updated product.
Fetus