Yes, the problem with the old version is the contrasting I think. Alys is in the abckground with this massive blob of brown hair and Chaz is in front with this almost luminous yellow hair. And the reds were pretty off too.
Anyhoo, as for this one. Well your experience drawing Alys shows for sure.
I also love the colouring job. It's very well done indeed and shows the effectiveness of such simple methods. I know I'm hoping to sign up for some CG lessons next year, if they exist here, so I can actually put photoshop or PSP to use.