Right now, it is just dragging some objects around. Doesn't really feel like those "Dress up" type games in the app store. Take a look at those and see what makes them special and interesting.

A few ideas:

• Organize your graphics better.. Maybe some categories where you tap and a popup appears where you can select/drag from.
• Allow for rotating. Some of the graphics don't really fit (the glasses), it would be nice to give the user a way to rotate them. Here's a challenge: try to recreate the same rotation that is built into hyperPad. dragging the corner to rotate.
• Allow for resizing. Similar to rotating.
• Some sort of effects when it's placed, or removed.
• Music, sound effects?
• Make it feel rewarding. The gameplay is really simple (which is fine), but you need to hide that and make the user feel excited, and interested even though they're only dragging around some items.

Add the peashooters animation. Then it well be good

Are some of the graphics from Club Penguin?

I like it. The graphics are very high quality which I think makes the game good. One thing I think would be cool is if putting different things on him made him do different animations. For example: when you put cowboy hat on, he acts like a cowboy. More graphics would be cool to. You might want a file system to keep all the graphics from filling the entire screen.