My oh my, those are...wondeful!
You're right, the Dwarf Fi?ure is in the wrong colors. At least the legs themselves and boots are a reasonable color for reuse as you have done.
I love your dwarf army, I really must assemble one myself now that it's been made easier. I hope that now they've made a mold for Dwarf legs they'll use it again for a Dwarf Special, and not give him ridiculous bright blue or orange boots.