Read this, should give you some help:
http://www.pixeljoint.com/forum/forum_posts.asp?TID=11299
It's something! Actually, i just started working, so i dont really have clear definition of what pixela art is. Gimme a break ^^ Something of this is done in photoshop with some filters so hat could be clearly seen. Im just a newb at this moment, but im ready to learn ^^ Btw, it wasnt smaller, it was larger, i just croped down face.
Looks like you've resized this from a smaller pixel attempt using a non-pixel resize method as everything is blurry as hell and the colour count is rediculous. It's also got some weird horrid glow around the face and hat.
Thanks a lot, man. I will read this for sure! ^^