Hey i like what you did there yeah the arm looks better specially since the hand looks less off, you know kinda watching it like that makes me think on a kinda AP Hires sprite (3~4 colors lightsource Front/Over).
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Actually had trouble deciding how the lightsource should be since the reference for that was GGXX sprite for the most part.
The lightsource seems to come from Back, Over and Front at the same time akwardly :S so tried another thngy.
Thanks for the feeback (and the fix) mate.
Ill do a quick fix later just for some minor detail.