Hey all,

I've done it! After all this research, I've finally found a way to break the limits on sprite colors!

Here's the instructions:

1) Install GIMP if you haven't yet. It's a pwnsome graphics editor!
2) Save your framestrips as 24-bit bitmaps, so they don't lose colors.
3) Open said bitmaps in GIMP.
4) With the image's window active, in the menu above, go to Image->Mode->Indexed.
5) Just press OK, you don't need to change anything here.
6) If your sprite had less than 256 UNIQUE colors, it shouldn't have lost anything. Save the new bitmap with the Save As function.
7) Repeat until all of your framestrips have been converted.
The coolest part: Gfx2gba fusion. Run a command like this:

gfx2gba -t8 image1.bmp image2.bmp image3.bmp image4.bmp

9) And so on and so forth until all your images have been mentioned. It will generate ONE palette for ALL of them!

I'm using this for my upcoming Four SworDS project, and it's the reason I haven't exploded yet 

That is not related AT ALL to the topic.

And this solution also works on DSLua 0.6, 0.5, 0.4, and even 0.3. So don't even start.

Yeah, the problem with that is that gfx2gba can only use 256 colors total. But, if your sprites are low-colored like Pokemon and Zelda sprites, you can probably fit around 20-21 18-sprite framestrips in one palette. At least I could.