I'm not sure I agree at all about those problems, certainly not with the expressed magnitude, and i would say that the fix is not to elongate the face any more by lowering the features but to raise the features a few pixels instead so that they occupy the proper amount of it, leaving the chin where it is.
The only real trouble I see is a confusion between the hand and the breast.
Head is very distorted - just lower lower half (nose plus mouth plus the rest) for two pixels and it will be allright. And her left (higher) shouldercan do without this adiitional black line on top of it. Ofcourse we talk about girl. Other than that looks cool. It was done on Spectrum/emulator? BTW, original (well, It's cover of CRASH!) in good res:
ftp://ftp.worldofspectrum.org/pub/sinclair/magazines/Crash/Issue18/CRCover18.jpg
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... not sure what to do with the shoulder though.
Very nice too. Awesome addition to original Gargoyle game!