It's because you saved as JPG first and when you saved as PNG, you forgot to fix it, so it looks JPGed =P
It's too short, as BK said, it should look like an Egg. Also, there's too much contrast between the lightest and the darkest color, and when you tried to blend them, you made a gradient that didn't look good, these 3-4px lines on it made it ugly. You should try blending it on a rising amount of pixels, for example, the darkest color, 2 pixels, the next, 3, and so on. I don't mean exactly that combination, find the one that looks best. Also, you're making a wall shading, I mean, you're just following the outline. If you look at the image, the shading circles Whisp. Try making a circular shading.
It's too short, as BK said, it should look like an Egg. Also, there's too much contrast between the lightest and the darkest color, and when you tried to blend them, you made a gradient that didn't look good, these 3-4px lines on it made it ugly. You should try blending it on a rising amount of pixels, for example, the darkest color, 2 pixels, the next, 3, and so on. I don't mean exactly that combination, find the one that looks best. Also, you're making a wall shading, I mean, you're just following the outline. If you look at the image, the shading circles Whisp. Try making a circular shading.
![[Image: Fairies.gif]](http://i147.photobucket.com/albums/r285/CeDaher/Fairies.gif)