Everyone uses paint for sprites... And you didn't do good at all, sorry. The outline is not even recoloured! The head of Digglet is also not pasted very well on Machokes neck.
^^; My first fusion was better than this... xD
So why does everyone want to do a diglett lately? Anyways, like many have said, don't forget to recolor the borders and make the shade blend. =P It'd be easier with other sprites, this combination is somewhat difficult.
Hi, I did a little bit of recolouring and editing and here it is
please Compare
Real one:
My edit: