Very nice! I see you have changed the way Link walks, it's now a lot better! Keep it up! You could still work on the camera position, IMO it's too far away from Link, you should place it closer.
Other than that, you should use real Wind Waker textures, I'm in posession of the original textures, but I don't know how to convert them to .png or .tga, I'll just ask cb if he could help with that.