Thanks for the reply!
I'm sorry that I haven't posted things as I "finish" them, but forums aren't that great for this anyway cause 48h really should be like realtime advice.
Well, I've done some animations, and it's rough. Really rough Our game runs, it's playable at the moment but since it should be finished in 14 hours I won't post that WIP file, as the finished is so close. As for graphics, I really just rushed, and there are so many problems with these that it's not even funny But we like the game, and we already have our iPhone engine ready and another iPhone project, so we will port this, and that requires working out and finishing these sprites. So I really hope that you help me out here, even though I might not be able to fix them in time for the actual release, but I shall fix them later on, first finished Flash and then later on the iPhone version.

And how the game plays? You are the Awesomeman, a superhero with no superpowers, just cool gadgets like Batman. The theme was deceive, so his inventor deceives him, and some of his gadgets will malfunction as you climb the building. The gadgets are the jetboots, grabbling hook and the gliding cape. Point of the game is to get as far up as you can.

Here's some animations:
running animation, I kinda like how the legs move, but the problem is that the legs are different colour and I'd like to make it looping like, so it kinda switches legs. Also, I think the body needs some movement and where did this guy lose his other arm? What I do like though is the leg "silhouette" and the buttery arm wave


Jetboots
Our guy has a jetpack like boost on his legs, and this is how he rolls. The flame is pathetic, and shading etc.


Glide
Well... Uhm. Awesomeman can glide with his cape.


And here is a screenshot from the game, the background is crap, we don't even have a real tilesystem ready it's a fake Our own epic flash engine is truly epic, so fit for Awesomeman


PS. the music&sounds are EPIC

Actually all the info you need is in the palib link, just look here:
http://www.palib.info/wiki/doku.php?id=day4
And you actually are limited with colors, as DS has pretty limited amount of VRAM. That site suggests with sticking with 256 colors mostly.
When it comes to developing for DS, the devkit costs around 2000$ if you don't want any fancypants stuff. That includes that magical red box of weirdness and panda developer DSi, I think. You have to be a Nintendo's approved developer before you can even order the devkit, and unless you have a company it might prove little difficult.
I'd say stick to homebrew. If you want to go retail, you will need a publisher. Convince a publisher with a homebrew game. Also it's not THAT painful to port a game from homebrew to actual nintendo DS stuff, especially if you only have a demo.

Also, developing on homebrew is alot easier than with real devkit. I even heard some wild rumours that really big companies use homebrew stuff for testing purposes as it's so much cheaper and easier. By easier I mean adding content you can just drag&drop files, while real devkits require compiling everything into that cartridge.
Hope this answered some of your questions

In my opinion, go for Blender. Why? Most of all, it's free. You can't any better price than free. Polymodelling doesn't change after all, no matter the software. If you learn how to do simple polymodelling with Blender, you can do with any software (basically you just need to learn where to find all the necessary tools). As for unwrapping, Blender is easy. Just mark the seams and press the magic button, it's mostly there. Also, I'm in love with the "snap to pixels" function in Blender's uv-view.
I also think that pretty many users in this forum use Blender, so you can find help from here. But mostly, it's free. Less trouble for everyone when you use something that is free.

Maybe a simple tutorial should be written in this very forum.

Hiya, awesome work there. This is rather off-topic, but I'd need some help with Blender. How do you guys get so crisp textures? Do you get the texture filtering off in realtime too? Since I'm really struggling with those at the moment. I'd like to know how you render these, and how to texture the easy way? Your models are rather blocky so I don't think you get any suprises with texturing, but I'm texturing a VW beetle at the moment, and yeah.