You say that there are 16 colors, but between the both of them there is 29 colors. The pallete section should always include all colors not the quantity for each character.

Yes, but this is a simple swap color sprite.
So it's an other Mario, a green Mario ^^.

cool, but the Luigi version should be taller in my opinion :)

You don't need to include a pre-zoomed version. PJ has a zoom feature of its own, the - and + buttons beneath the image.