Rich with potential.
I like it, but I expected more, that's my honest opinion. There's tons of potential hidden within this simple loop, all you need to do is tap into it.
I'll outline a pro and balance each with a con, and try not to write too much of a textwall :P
Firstly, excellent choice of music. James Horner is one of the best composers of strong evocative music, especially that of the movie Braveheart, which was a fantastic masterpiece filled with emotion. This particular piece is called "For The Love Of A Princess" for those who want to know, featuring the prominent movie theme at the beginning, immediately recognisable.
However, there is one danger to using effective music, and that is when your animation doesn't meet its standard. It creates an unconscious tension within the viewer because what their eyes see don't match what their ears hear. Your animation unfortunately to me, didn't have that balance. However, that only means you have so much more to excel in. Take that music as a criteria for which your animation should meet!
That's not to say you're nowhere near, because I like your graphical art. Animators are strong in their own different areas, and I think you've developed your graphical aspect quite well. The blends, shading and shadows all merge into that serene atmosphere you've created. I reckon there's a slight disproportion with the elf's body, the thighs area against the upper body, or it could just be me.
The animation is what I believe needs the most work. When I say there's potential, I mean there's lack of movement. The eye is capable of capturing even the tiniest of motions, and as animators it's our job to suffice the eye with as much candy in as short a space of time as possible, but not so overwhelming it becomes unrealistic, only enough to be lifelike.
I'm envisioning sporadic twitching of the grass, leaves rustling, swirling as a billow of wind flows through the forest, her locks of hair swaying in reply, chest slowly rising and falling in time with her breathing, eyelids blinking every so often, her eyes gazing at the tiny fish circling in the depths of the pond, the occasional mayfly flitting to a rest on a frond in the foreground, the delicate bounce of the leaf in response, before the insect launches itself into the air again. It's all about detail in animation that captures and captivates the viewer into its world. With a loop especially, you have to contain a lot more intricacy to compensate for the still camera perspective.
And what you've done with the perpetual swaying of the leg and the rippling of water is what indicates potential, you've opened the portal to a world of visual imagery, you just need to keep pulling on that string till it all comes out!
Anyway Rob, I'm sure you've improved since this submission, but I hope my words will also influence others! Keep up the good work mate.