Nice. I actually bought Terraria a while ago on Steam and I played it for a bit and quit after about 15 minutes because I didn't really like it (I went back to Minecraft, lol). Then I got the Zelda texture pack that DarkLight just mentioned and the higher res sprites made a huge difference; I can hardly stop playing the game now.
So I've got to say that this is looking very nice with the higher res, and I love the colors and how you've pulled off that simplistic look, which is not as "simple" as some may think. Perfect level of detail in my opinion.
Personally I like the startings of yours more as the colours are brighter
Same here. And I also like the style of Link more than the one from the other Zelda texture pack.