The hat definatly dosen't need all the dithering, and the right leg needs to be straightened a little.
The lines are great, but the palettes could use some serious work. Make the darks darker and use a universal shadow color. You need more contrast and hue variation in general. This has a great discussion of color: http://www.pixeljoint.com/2008/01/05/2408/Pixel_Artist_-_Adarias.htm I really like the style, though.
Good!