i love it! i remember these things from when i was little. of course i wasn't exactly creative back then and never made anything very good. i kinda want to try using them again after seeing this, it's pretty cool.
You just have to go to your local craft store and pick them up. They are called perler beads. You need the little boards to put them on, and then once you're done your image, you iron them and they stick together.
LOL, my room mate prints out the pixel designs and gets the kids at the school he works at to make them for him, he has a whole assembly line of kids to help him sort and place the beads! You need a sweat shop of kids too!
Yea, I don't even know what that Pokemon's name is...I just thought he was cute. It's hard to tell, but there is another shade of blue in him. I never ironed him cause I wasn't 100% on it cause of the colours.