Oh p.s. where's his thumb on the lower screen? 
I tried to make it so his thumb was pointed in towards his body, since that's what it would do naturally - you normally don't have both thumbs pointing to the left

. Even though it looks funny on the bottom screen, it looks a little more natural when he's actually running around on the top screen. The thing I do notice now, though, is that the shading on his arms get flipped when they rotate to their normal position.... whoops! Not too hard to fix, but too late for the contest

Ah, well.
It was a last minute change, so the top sprites are actually an older version of the sprite I submitted (2nd shot)....hmm.... wonder what happened to my final version, then? Hmm....
Oh and p.p.s is there a demo, because it looks that way since the small bunny sprite
is in n angle made by a computer...
Uhh, sort of - these screens are all from the Flash-based contest IGN was holding a few months back. Even though the contest is over, you can still play with the generator they made:
http://microsites.ign.com/nintendo/drawntolife/Not sure how much longer it's going to be around for, but I think it's only a couple more months til the game comes out anyway...
My friend also brought back a demo of the game he downloaded onto his DS when he was at Comic Con this year. You only get to make the main character and a cloud object, but I was having a blast with it (uinfortunately, I didn't have my character design on me at the time, so I didn't get a chance to actually try it out in action yet). But, yeah, this game looks pretty rockin' - I'm really looking forward to it coming out.