Not sure why the image didn't show up, but can right click to see properties and the url is correct there.
Anyways, I think where you went wrong was that you filled the background with green before you shrank it - the idea is to create the outline manually after it's at the finished size.
When you shrink an image the application doing it changes the colours, especially where 2 colours meet.
The other possibility is that you saved it as a gif or jpg from ms paint (always use .png format, it preserves your colours and has a nice small file size - convert to jpg or gif from that using another application).
See if either of those is the cause, otherwise I'll need more info to figure out what went wrong. Send me a PM if you need help, I don't check the forums all that often :)
Oh, and love the character!
Dinosaurs had eggs bro, the chicken came way later.