Thats just because i don’t really know the ins and outs of the blender internal renderer so i tweked it a little bit in order to work with the texture in cycles to get a visual feedback.
Even if you work with simple textures be sure to have a decent UV Layout. In your case you want those eyes on the right spot but the rest of the character is a simple color.
I focused on the face UV of the bird and after that I did a smart UV unwrap of the rest and scaled it down.
You see its just a view clicks more to do but you have a consistent UV and thus less things which can cause problems. Aaaaand you just need one Material for the bird body. Actually you can try to take that texture map of the eyes and put all the other UV’s of the whole Character on it. Because you just have simple colors it should be the same result but with just one Material/Texture. Just a tipp from my side you can try it to improve you effectivity in your work.
So convoluted if you like me to show what i mean i can do that
By the way, i really like that bird nice work