I agree with Darth, the 8-bit hi-res version is crisp and nice. Reminds me of the characters in Torin's Passage or Toonstruck.
I think this style of character will look absolutely wonderful on a painted background. I would up the saturation and contrast on the backgrounds after scanning though, since the concept artwork looks a bit washed out.
Edit: Badly photoshopped, but you get the point. I think a saturated background with a hint of outline (not pure black like on the characters) would fit well. To make the background less dominating you can experiment with color coding areas so that every primary color doesn't appear in the same scene, but for instance red and yellow dominate one while another is set in blue and greenish tones (Torin's Passage is a good example of this approach, Toonstruck an eye-hurting example of the opposite - even if it does work for them).
I think this style of character will look absolutely wonderful on a painted background. I would up the saturation and contrast on the backgrounds after scanning though, since the concept artwork looks a bit washed out.
Edit: Badly photoshopped, but you get the point. I think a saturated background with a hint of outline (not pure black like on the characters) would fit well. To make the background less dominating you can experiment with color coding areas so that every primary color doesn't appear in the same scene, but for instance red and yellow dominate one while another is set in blue and greenish tones (Torin's Passage is a good example of this approach, Toonstruck an eye-hurting example of the opposite - even if it does work for them).