First, look this Final Fight on 16 colors, all the ingame graphics with the same palette
First of all, I captured some pictures on the same level or levels in the game. The original graphics:
I extract the parts I supose to make with HW sprites, this is the background with the BOBs in 16 colors:
This is the HW sprites, another 16 colors:
This is all mixed:
For the video, I make the same conversion for Gradius, then I load the image in Promotion (a good graphics program), with the color palette, I can import the Avi I captured with Mame, then, the video will have 32 colors (in this case, all the graphics because I am not separated the HW sprites from the backgrounds).