Big update:
Character walking:

edited using some of the tips found here -
http://www.idleworm.com/how/anm/02w/walk1.shtml (I'm 100% certain this has been posted here recently in some other thread; I used it for my own animations.)

rough edit.
AS it is, he's walking rather unusually, and not to rag on it, but his legs look like they're attached to splints preventing him from properly bending his knees. I don't see much wrong with the arm rocking, except his black arm bends the wrong way.
I think you're on the right track with the body bobbing up and down but it's bobbing at the wrong time, i think, unless you're going for a 'skipping' motion, in which case it would seem to make sense.
I also made his hair bob a little bit but that's not really that important.