I think your graphics are looking absolutely excellent so far. They are very atmospheric.
Animating the character, particularly a top-down character, really isn't as hard as you think - just have a go! You only get good by lots of practice, and you don't have to show anyone the attempts that don't work out.
What makes your life easier on a computer is a cartoon walk doesn't have to be natural to work well - just look at Bonecruncher. No one walks like that in real life, but it works for Bono.
But if you get stuck, this book is brilliant for explaining everything you need to know about animated walks:
http://www.amazon.co.uk/Animators-Survi ... 691&sr=8-1