This was ok, you've got talent.
Just work on making things look seamless, and make them move like people would. I think people like these sprite fights because the action can seem a lot tighter and more realistic than when played as a game. In your movie, sometimes they would face a direction and you couldn't tell why, untill the guy appeared their for them to attack. Stuff like that takes away from it. Also find appropriate music. You're really good at putting an entertaining fight sequence together, especially for your first submission. Just find more fun ways to have them go at it!