I suggest reading the http://web.archive.org/web/20050212231755/www.tcp-ip.or.jp/~s-iga/tips/tips&tricks.html - mozco tutorial (it's archived and some images are broken but it's still the best metal tutorial out there for pixel art) and applying its techniques to this knight to give him some nice shiny armor. The most important concepts for metal are contrast and reflected light; be sure you understand how Igarashi (Mozco's creator) uses those on his icons. Though I agree with halfDemon in the respect that you can choose to use dither on any piece, here it would ruin the illusion of a metallic surface (once you give it one ;) ) and generally isn't used on sprites; they have enough good high-contrast colors and enough detail that open spaces for dither are rare if found at all.
I also suggest changing the saturation of the armor from 0 to something higher but still very low; on a percentage scale something like 5 sounds about right but you should mess around and find a greyish color that has enough tint to be interesting.
The piece seems solid anatomically (based on my meager knowledge) and is okay in that respect, but it might be improved if you turned him to face the viewer just a bit. Though he really won't be walking that way, it'll give you more space to define the shape of his armor, make the walking/running animation(s) easier for the viewer to interpret, and make the piece generally more interesting.
Another thing I'd like to say is that you should try to define shapes and distinctions between pieces of armor more realistically. Show separations with highlights and shadows and overlap armor segments so you can make fullest use of the shadows. While you're at it, I think an above-front lightsource would be more effective than the purely frontal one you have now, in that it will help define details and simplify lighting in an area or two.
Crud. Noticed one more thing. Make the cape a bit more dynamic, I say: it doesn't need to be flying behind him like in a running anim, but maybe have it move a bit if/when you animate this? Giving motion to the cape would also be made easier by turning him towards us a little.
Good luck with this project!
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RPG is numberwang.
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