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Okay, I drew really tiny pics and this is how they turned out, about as small as I can get them, not nearly as much detail as I would like...any ideas for more detail or improvement?

Would like a few criticisms on this character. I can draw fairly okay people (mostly chicks for some reason) but any advice u have on improving her would be great.

Hi people, I have searched everywhere for an answer and while some topics come close, I haven't found exactly the info I need. So anyway...the question is...how can I prevent my character from becoming blurry when I make her smaller?
I did her on photoshop using layers (just like an onion) and when I resize her to a suitable size for my game which is 16 bit, 640X480 she is unrecognisable...also, I would love a few criticisms on her, as she is my first attempt at a character so if someone could tell me how to make her appear in this box that'd be great.

I have a horrible feeling you are all going to tell me I have to completely redraw her...*cringes*
if so, what size brush should I use (in Photoshop) and what dpi and what size should I start with (what colour underwear?) etc...
Thank you for your help, I am in awe of the artwork and genius of so many I have seen on this fantastic site. (crawl crawl)