This is my first attempt at a game jam so sorry if I sound like an idiot! I just wanted to clarify that the 4 color limit per sprite is based off of a 12x12 pixel block, but we are allowed to have sprites larger than 12 x 12, corrrect? My little character I'm making can be for instance, 24x12, but I just have to make sure there aren't more than 4 colors in those 2 boxes?

Thanks!

I would say, it's okay. Even NES games constructed bigger sprites out of their 8x8 sprites supported by the hardware. Some games even placed mulitple sprites above each other to achieve even more then 4 colors (MegaMan is a perfect example for this).

Yes, as kieselsteini, in many retro systems, the in game sprites are made out of multiple smaller sprites, so you are welcome to do that here, it's just the limit of colors per 12x12 area really.

And to clarify, this rule is also optional.