I worry that they may disqualify it from the competition, because Sesame Street characters are owned by CTW and the Fraggles are owned by Henson. Big Bird is only a puff of yellow feathers and Slimey is just a worm, so I think they'd slide right by, but there may be just enough Red visible that they might get fussy about copyrights. I really hope not, though.
Oh, I also liked how you put Walter in there. Not many people have used him.