Extremely well done.
I find it hard to believe that this can really be your very first flash. Also, i've watched ep. 2 and was quite impressed. Although i don't know how hard it is to make a sprite movie (as i usually just stick to fbf) i don't think that this would have taken 7 months for somebody more... experienced.
A tip for you: watch Super Mario Bros. Z... although the title may not suggest it, it has more to do with sonic than mario. This movie definately familiarized the looks of super mario bros. z, and i must say, in comparison, smbz definately brought more to the screen in under 4 months. But, the animator was definately more experienced. I suggest you pm him (sorry, i forgot his name, search the vid) and talk to him about animating tricks, a few new skills, and if you get along with him well, possibly even some custom sprites? In any case, talking to him will definately do your animating career good.
All-in-all, this was excellent for a first time submission, but i doubt it was a first time flash; there is a difference. Also, ep. 2 surpassed my expectations; although the animation was only as good as any other sprite movie, the plot.. your plot is simply amazing throughout the story. And i love how you kept everybody in character, unlike most sprite movies where sonic would see amy and be like WTFBBQSEXXXXX :D
Very good job. I am waiting for ep. 3 :)