Style and Shading Development

[GrooveMan.exe]

Nono, the whole point is either to use black for the shadow, or not al all. It's kind of half-hearted to have a little bit of black.
When I mean palette creation, I'm talking about the mathematical hue/sat/lum patterns to make a set of colours. A lot of palettes go by very specific value rules, and if I can figure out the rules to make a palette for one colour, I can easily apply it to others. For that image I cheapened out, and just used colours from some Nippon Ichi sprites.
As for the square highlights, "correct manner" is kinda vague and not too useful.

I should probably pm tyvon or 1up about this, they're already used to some aspects of this style.