I have to disagree with Hammerite too. Please, do not change the style of those graphics. They probably won't get very good ratings from anyone, but at least they're made by you! And they do look quite cute. 
I would suggest you not to use the MS paint default palette for your colors though. The RPG colors just hurt my eyes. If you'd just modify the colors to be a bit softer, then the graphics would be nice.
I'm sorry, I know this isn't the Critics Lounge, but I'm sure nobody minds if I do this little paintover, just to show you what I mean with the color usage: http://img80.imageshack.us/img80/7398/scrnshot3paintover2hs.png
I somewhat like the story/idea of this one and it seems like it's going to be quite a long game too. All in all your game sounds very nice! Good luck with it!
When are you thinking of releasing this by the way?

I would suggest you not to use the MS paint default palette for your colors though. The RPG colors just hurt my eyes. If you'd just modify the colors to be a bit softer, then the graphics would be nice.
I'm sorry, I know this isn't the Critics Lounge, but I'm sure nobody minds if I do this little paintover, just to show you what I mean with the color usage: http://img80.imageshack.us/img80/7398/scrnshot3paintover2hs.png
I somewhat like the story/idea of this one and it seems like it's going to be quite a long game too. All in all your game sounds very nice! Good luck with it!
When are you thinking of releasing this by the way?