This is a cute little animation, though I agree the dithering really hurts the piece. The lightsource is also a bit inconsistent and some parts borderline a bit on pillowshading. It's a great concept and I do like the animation, but I feel like it could've been executed a lot better. Dithering is something that must be done in small doses, or it can overpower the piece!
I'm not askin' you to go back and update every frame, but these are just things to keep in mind for future pieces. Keep on pixellin'.
Thanks for the positive reactions!
@onek: I suppose I could let the dithering on the red go, It does look a little crude. But I don't think I can bring up the motivation to update all the frames... 
Love it so much XD
You got attention from alot of our best artists, so you know you're doing something right.
hehe nice :) relly cute...
i think u should get rid of the dither ... its not helping this piece at all.... otherwise nice job :)
hmm... update every frame?.. that would be a lot of work indeed... i think u should find a different way of animating then ... since most of the image is static u should have the static parts as a background layer and only redraw the parts which are actually moving, hands, face, screen... i think there are a lot of freeware programms around which are capable of that... or get photoshop illegaly