Looking much better now man
, what you need to do now is lighten that dark color on the pants a bit because with the dark coat outline it looks bad (too many darks mashed together), btw that dark outline is good for only the outline most of the time, once you begin working within lighten it up some because it will clash too much with the lighter and/or darker colors, same thing goes when working with darks.
You have to be able to tell your shades apart at least pretty well, if they are too similar your picture ends up looking all.. muddy.
Now when working with clothes start out very simple and with a base color for that piece, get your outline just the way you want it then begin working on details and shading like extra parts, torn pieces, and different colored parts.
Think of the shape of the clothing and how it hangs on the body, keep the "creases", clothes seams simple if you're working with smaller characters.
With color and smaller characters for the most part you need to have more contrast than on a bigger sprites rememeber that.
Also rememeber that hair that hangs over the forehead casts a shadow, so at least add a slightly darker shade where you think the light does not hit.
Here's a quick example of some of the things i mentioned.
Image has zoom
http://i487.photobucket.com/albums/rr23 ... mple-1.png[/IMGZOOM]
I hope this helps a bit man, and if i'm wrong on something i hope someone will correct me.
To add zoom to an image just paste the image code and type in zoom after img