I agree that the clouds were one of my weakest points. As I advance in pixel art, I will revisit this piece and continously improve upon it when I can to clean up the tid-bits that seem off. I especially like the edit by FlyGuy in terms of style (Don't worry, I use a touch pad to make all my work so I understand the difficulties that come with it). Thank you all for the feedback :)

I agree the clouds are weak but otherwise nice, especially the knight.

The knight armour is nicely colored. Also i like very much the mushroom fierce look >:>
Maybe you should consider about dithering on some areas, for instance you could obtain very nice light grey cloud (mix of light blue and pink) :)

 Another DB16 fan...very cool. I think the clouds would be nicer in the background of this piece instead of in front of the mountain. -- here is an edit i made

                    http://oi47.tinypic.com/o8c8z5.jpg    

... sorry it looks bad, im using a laptop touch pad with no mouse. hope this helps