The water is actually quite cleverly made (I like it), the clouds could use some touching up from "copy and pasting", the monster could use some pixel fixing (particularily in the mouth).

I'm sure with a little fixing you could make this a fairly good piece of work. You're off to a good start  just observe some older games which have pixel graphics (like Rayman 1) and you'll learn even more. Images are better teachers than words.

Poor water, smoke is awful... monster looks bad. This needs a lot of work to do...

Hate to pee on your parade, but the rules state that 32 cols are max, while yours contain 81...

K, its fixed!!!!

nice water reflections....

Your entry is 1 pixel too much height-wise.  Can you please resize and resubmit it?

Yes, the clouds are copy pasted, I'm sorry.. forgive me..
But aside from that, hows the rest? BTW I removed the animation of the water.

The water and cloud's let this down, the copy+paste cloud's just isent working

It looks good, but the movement of the water is unnatural and looks horrid. There are also three pixels in the clouds that are randomly animated. The inside of the monsters mouth also looks a tad weird. Other than those, it looks good.

The clouds seem like a single cloud copy/pasted all over the place. And there seems to be a single gray line appearing in the clouds for no reason.

But good effort and good luck in the competition.

The water movement is too odd and the clouds are too repetitive.