An example screenshot of a NES style project I was doing as an exercise to put some limitations on myself so projects don't spiral out of control but also cos I just like the look the NES's limits put on it's own games (and also it's a relatively small and easy project to get done given that I don't have much free time these days). I created this with the advice of people on a NES development forum to help learn the whole sprites/background tiles seperate palettes quirks of the NES and some of the stuff you might think is sprites is actually background tiles such as the chests, crates and animated coins (the main use of black areas is to put loads of coin tiles without needing them to be sprites). Am sure it looks pretty ugly to some people but I'm quite pleased with it so far.
The sprite palettes are set up of green, pink, blue and red which is because the green and pink dragons upgrade into blue and red when they have got their power ups (blue is ice and red is fire) and there's several co-operative moments in levels designed for a second player to join the first ingame and access extra rooms and bonuses similar in a way to the superb LittleBigPlanet.
This particular NES palette was taken from www.thealmightyguru.com/Games/Hacking/Wiki/index.php