That looks great! Its really coming on well
Personally (for the final project, obviously I know this is not a priority) I would have thought that a shadow is needed for the character and buildings, a fake one could be added easily as a plain, or obviously DBP will generate them if you want. OR if you don't want shadows, if you add the line "Set Ambient Light 100" the current shadowing on the textures of the model will be lost and you'll get a cartoon, shaded effect which might look cool for the game
The above isn't criticism, its just that that objects have shadowing and shading from the light, but not is cast on the floor, so you get a small cut and pasted look. But don't take this wrong, it looks brilliant and I'm well impressed with your work
Also, how about maybe adding a floating hand to the sword like on the logo on your website? Maybe it wouldn't fit in with the look of the game, I just tht it looked cool
I think hands but no feet would be cool, but its obviously completely up to you!