Proportions look alot closer to Dwarf now. It's interesting to see how different companies get that look for example comparing a WoW Dwarf to a AD&D one.
I'll do that at later since I needed renders right now and I'm not so familiar "yet" with in example marmoset or UDK. (Trying to learn) ^_^ Is that you Kostas?
If you decide to go with Unity it's relatively easy to setup most of the coding. Here's an example project http://unity3d.com/support/resources/tutorials/2d-gameplay-tutorial
remember that if you intend to work on UDK for example, you can later on add definition to each different rock model in editor using vertex colors + heightmap.
What video player are you using? Media Player Classic (for example) lets you control the video hardware rendering. Switching to the software rasterizer might solve it.
Hmm, ok maybe it is just the geometry or the way it is presented, but the houses in the background (for example) really scream "anime-like" at me, while other parts are almost photorealistic.
Looking good. The leather jacket looks little too realistic compared to the cloth jacket for example which has much more painterly feel. Consistency = everything!