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It looks good, but it might be difficult to animate the head. The hard part about animating something with a double-chin is properly weighting the chin to the skull, and the fat to the next or upper body. The body also looks a bit sparse. The ears look flat. Most of the body is under the origin. Thats about it I can see.
Change Blender Render to Cycles Render. This will be the new default rendering format for blender. Press F12 to render a frame.
Here is a quick overview.
Basically, Cycles renderer uses BSRD textures. To put it simply, BSRD materials more accurately portray light than the standard renderer. The pipeline to creating materials also becomes much more like a modern node based system. You can adjust how it looks. The first thing you will most likely notice is that the ambient occlusion calculation brightens things up alot. This can be turned off or adjusted down per material by clicking on the World Tab. You will also get a grainy image because for initial renders it does only a couple passes. This can be adjusted in the Render Tab. In Sampling, Samples, Render increase it to something like 128. This means it runs 128 passes per pixel.