I love the soft colors
The only complaint is the doodly clouds - zoom really gives them away :D
I agree about the clouds in the background. They seem rushed, like a last minute ditch to just finish it and turn it in. Pixels take time, and nourishment, my good man. Don't feel rushed to finish it, until you feel it's finished.
The castle itself is okay, but can still use a good looking over in certain spots, mainly the roof tops. But thats nothing a lil' bit of cel out can fix though. Although the colors selected for the castle seem very soft, I can understand the thought process in choosing them, since, you were most likely thinking that since it was bieng viewed from a distance, it should be wee bit undefined, and "soft." The main reason I like this thing, however, is the way you textured the grass. To me, the grass is what tied this whole piece together in this gba/snes-ish scene. Great job on this one....
Love the colors and the foreground :o
The background isn't that cood though, its gradient and the clouds are blockey...