This rocks! I really dig your style and the character design. I also believe that you did a great job including and playing with music as an active element and, when it was at the background, it fitted fantastically too. I wish there was more stuff like this around here.
My only complaint would be the quality of the VA. I'm not sure it did the rest of the animation justice.
I loved the sheet of paper on the arcade's eye to make it look more piratish... It's awesome!