Mit's Sprites and Such

[Iocus]

I think the eyes are pretty awkward. If you are going to give that much emphasis to the nose and the cap, you might have to give up some eye space. The way you have it, it would seem like the top of Mario's eyes were aligned with the top of his nose, which is, of course, not possible. I would suggest something like along these lines

Also, I for one don't like the blue, it doesn't contrast all that well and it's excessively dark. No biggie, though.