Could be better
Well, the effort is there, its just that you need more animation in your movie. From what i saw, the people you drew didn't walk, move arms, etc. Also, you say the movie needs to be set on a low quality. Now I know what you mean. If you take a look at my movie (tetris flash demo) You see I also say put on low quality. One way to prevent something like that with movies is try not to use transparicy effects because that slows down ur movies. One more point is try to draw your own backrounds instead of bmp graphics. Nice try.