Wow... The way you describe this you make it sound like the smw-hack equivalent of "Shenmue" (and by that I mean extremely ambitious,
slightly pretentious, and you don't really have anything to show off as of yet). From what I have seen from the current screenshots, it looks as though you are planning to add ExGFX, and from what you wrote;
Originally posted by 1337doomThe player is still Mario not Dyemand, the enemies, palettes, and background haven't changed, but I do have a message box and some small sections of the level.
You did not seem to mention anything about changing your foreground graphics. From what I have seen, there are parts made up of nothing but cement blocks, which is something that are considered "not up to standard" here at SMW Central. I don't know what you have planned, but that's just a little warning. I'm guessing from the thread title that this only serves to show off your new character sprite, but like others have said, if your character looks almost exactly like Mario, there's no point in calling him a new character, so I would advise changing your design. If you could, you might want to show your friend a drawing of what your character would look like ideally, (unless that the sprite you already showed is what you ideally want, then I'd suggest changing your idea's) so that it can be faithfully redrawn as a sprite.
While it is good to have vision, you need to think about making this a fun game to play with good level design. If you go into making a game thinking about things like your bosses and having a TON of ASM, and writing an epic sprawling story, you will probably never finish your game. I've seen this happen so many times on indie gaming sites. Newbies go into their games planning a massive plot full of twists, awesome cutscenes, graphics and god forbid - sequels; (the game itself is completely neglected) and almost none of these games mentioned ever get finished. So just work a little more on your levels, and focus on making a fun game.
The biggest thing about your project is how limited you are. As of right now, SMW hacking is very easy. You have a GUI to hack with and there are no core system aspects (like physics) to code. However, there is a point where you reach a limitation; you're limitation would probably be your 3+ character system. I would suggest further thought before you put more work into your project.
ALSO at grishnax; I'm guessing that you knew he edited Yoshi's house based on fact that you realized he has only edited the physical levels, and nothing with the status bar and you saw the timer was at zero; and what looks like a side exit at the left.
EDIT: Why are all of my posts long, walls of text