YEah but you can't have as many colors in each sprite as you want, usually. As I said, you need to talk with a coder and read up about Amiga graphics limitations, just having everything in 32 colors doesn't make it correct.
It's better to start with the right foot than doing a load of work that you have to correct later, a pain in the ass. Look at the graphics discussion in the latest pages of the Rygar conversion:
http://eab.abime.net/showthread.php?t=70634&page=40