Not bad, but there a few points I think I can comment on;
A good idea is to put a theme to your video. For my Chaos Legion video, I based a story around Seig's pure hate for Delacroix, and the building emotion between Seig and Arcia - with the shock ending. I can see you were obviously trying to convey emotion and Inuyasha's feelings for Kagome, but I didn't really see much to build on that. An idea I saw in it was at the end with Inuyasha coming back around form Kagome's kiss, maybe you could build a story/theme more on Inuyasha fighting his demonic urge? It sure fits with the song.
The digital effects were a little heavy, I didn't see too much point in them really. I've tried to stay away from them so far as I haven't seen a need in the vids I've done so far, although the song I have in mind next has a very old style sound in the intro with static, which I think would go great with a grainy black and white 'film reel' effect, then a fade in to colour when the music kicks in. But the most your video really needed there was crossfading.
This is more based on my standards than anything else. Try to stay away from overused anime*, there's countless Inuyasha AMVs out there made by people with little to no talent, you have a lot hidden there. Use it for something nobody expects.
*I know I'm using FF7 footage for my newer video - but I took on a different edge by basing the theme on a man's dream, and nothing to do with the actual FF7 story (Plus avoiding Sephiroth). I like what I saw of your Inuyasha ideas though, if you intend to use Inuyasha, I like your take on the more emotional side.
Timing. I didn't see much in the way of timing with musical variation or transition/movement with the beats. Something I've done is fit a section of visual with the lyrics, and transition to a verse change, loud note or beats. I'm not explaining this one too well.. bleh.
Don't use fansubbed anime. Try to find dubbed versions and just cut the audio, or crop out the subtitles.
Other than that, I see great potential. I haven't created anything great myself, but I know what I like. And through listening to other people's comments, I know what they like. I hope to see more from you in the future!

There are 10 types of people in the world.
Those who understand binary, and those who don't.