I feel you bro. I use PS too.

The moved eye looks great. Now I can fav it =D

Alright you bunch of jerks! I moved the eye!

I used photoshop. It's far from perfect, and in fact very frustrating at times, but the ability to quickly duplicate and reorder layers is invaluable.

that run cicle is so good to watch! Very VERY nice job!

My only critique is that the eyes and mouth are too far back. Pushing them a couple of pixels forward would make wonders for this mega. But that's just me =]
 

Also, I just saw your process. AWESOME material! What program do you use to animate, btw?

Really you should see it, especially on the frame where his head is facing the camera more, but I sacrificed that for readabilitie's sake.

It's got charm and well animated though it does make me wonder how far apart his eyes must be if he does have two of them. :P

Nice run! Thanks for saving the steps too :). This is how I would animate too if I was good in planning.. 

Nice Sprite!