Well, you definitely didn't adhere to the limitations; the music is not only multi-instrumental, it doesn't use the Nokia bleeping sound; the menu uses mouse input, which is not allowed; the resolution is fine, but there's sub-pixel movement and some sprites have smaller pixels than others, which is not allowed. It's also visible that there's anti-aliasing (blurring) between pixels, which shouldn't be the case. (Try turning off "Filter" in the import settings of your sprites.)

Gameplay-wise, I can tell this is just a demo so there's not much to judge. Still, I think you could make walking around more interesting if the environment looked more varied and unique.

I found the chest monster or at least I think it was a chest monster, but then I didnt know what to do. Music was nice!