Hey asumsky! We use Toon Boom for most of our sprite animation - it's the same software used by Disney. http://en.wikipedia.org/wiki/Toon_Boom_Animation
absolutely beautiful graphics! I am busy submitting our first game to AppStore, but as soon as it's done I will contact you.
Here's an example of what our Lifemove animation process can do. With Lifemove we can take any 2d image (drawings or photos) and create a detailed animation that's more fluid and dynamic then traditional cut-out animation. These are characters we animated for Floop. We were provided with the static drawings (above), and animated them with Lifemove. Before After (We did not create the above images, we only animated them) As a side note, these gifs look really funny if you watch them while listening to music.