It.....
Shows promise....
Do something about actually working with flash (with the quality of those graphics there's no way you made them in flash - unless thats the style your going for)....
Work on the fluid motion of your character's, this can only really be done by increasing the frame rate and adding more frames for refinement, but it's interesting....
I like idea of ther ebeing some crazy midget fighter... do you storyboard your work before you try making it...? might be worth giving it a go....