[Soul-Blade]

I like it. They are right about the white dots issue, and here is a solution to that.

Your images has those white dots ALL over the place. There is no apparent light source. In addition to having areas with extremely high brightness (white dots), make some areas what are very dark as well. You will see your tileset come to a very high level of realism by doing that. You already have the lighting done - just add the shadows on the object.
In addition, do a little more blending. That can be done with the blur tool or manually, but if you do use blur be very careful. It can be over used a great deal.

It looks very good though. It reminds me of something I made a while back. Nice work.