Ewww.
Your avatar is already pixels, so what that program has done to it with the dithered colours is gross.
Yeah, its a freehand crop tool with no snap, it's really meant for photos. I tried to quickly visually scale it to 32x. I can see the results being really good though, and a damn sight simpler compared to what I used to do in the previous games, which involved cutting an image into smaller chunks, making it 15 indexed color greyscale in photoshop, then replacing those colors with the colors from palette 1 to easily (but still very tediously) redraw the pattern in AC.
With this, I could just make an image greyscale and then slice it into squares yadda yadda, done.
EDIT:
Here we go. I'm sure this will become everyone's town flag.