First Sprites need constructive criticism

[Kamoe]

It's good for a picture but too blurry for a regular sprite. Note the word "regular"! If you think back to games like diablo, you'll get the same sprites. They're blurry and barely readable BUT they were made different than photoshop or paint.
Anyway, if you work with layers you might try GraphicsGale. You have 2 types of layers there:
- normal layers
- animation layers

Some things are bit complicated at the first, but you'll get the hang of it. If you have some troubles, just PM me and I'll help.

Otherwise like everybody has said, use MS Paint for basic spriting .