good job seven.
there's just a few mistakes. diablo seems a little to small(compared to the corspe and building and stuff,
diablo should be able to walk behind the pole in this img below,

and the blur in the background disappeared,
also the walk loops looks pretty bad.
suggestions
instead of the arrow keys use wasd for movement. i feel that those keys are alot easier to use.
when he walks behind the tree the alpha looks kinda funny. Maybe make the a outline instead( i dunno) or make the whole tree alphaed.
edit
bg expanded(now has farm and a really ugly forest
link removed