Thanks for the feedback! I tried to add some more detail,  I hadn't seen the 16 colour limit

Now that's oldschool.

I agree with crozier. More work on the colours and the design could turn this into a nice little sprite.

I like your preview. Its amusing. But I think this could use some work. I can't tell if the white circles are his eyes or his chest plate. The lines on his hat-tentacles are also unrefined. The contrast is also bazar (seeing that the grey, brown, and darkgrey are all similar value, but the white being crazy light.)

Feel free to add colors, and be a little more creative with the design. A little flare would help, when you are in a lineup of similar looking bland pieces, know what I mean? I know you are limiting yourself to the same colors as the original, but the original was randomly generated, and you still have almost a week to work on this.