Well, I would spend more time on it, but I have 4 exams in the next 5 days (university), so I'm thinking it would be more prudent to allocate that time towards studying. And nothing is perfect, there will always be room for improvement. :p

And there is no reference for the image as a whole, though I admit that I did not draw certain elements entirely from memory (those being the master sword, skulltula, and the poe). Here is my progress animation: http://thesalus.googlepages.com/2bitmastersword.gif.

"Could be better", what an attitude, I've spent at LEAST 24 hrs at my (unsubmitted) piece, and I sure have learned alot during those hours I tell ya that. Would be a better pic if it was your best effort. Looking good... so far..

I really like it, but I think you should probably put the reference in the description.
Nice job :).

The whole ray-of-light-shining-through-the-trees-on-a-sword thing really comes through well

The lighting on the tree is great too.