That is going to be one hella tough habit to break! ):
I'll try it out when I start something new, however.

Side note: I just noticed that the picture was broken, so I upped a new one in case you missed it. (Edited the initial post it was in).

Hm... thanks for that, eck! I'd like to say that I also take notice of the face issues and have already tweaked it a bit since this one (chin was too far out, for example).

As far as colors go, I'll say for now that I was planning on upping it to 16 whenever I start doing final touches. On the color choices themselves, there's nothing I can really say. It's a mixture of instinct and ritualistic decision-making on my part. I'll take the palette you've created for a test run and see how I like it, though! I've been told about having issues with contrasting colors before, so you're definitely not the first.

A bunch of new shots from Street Fighter IV..
[snip]
Apparently we'll get to see it in motion on the 1up show tommorrow, I'm guessing they'll just show Ryu VS Ken though (even if it would be interesting to see some of the other characters).

Yeah, I really need to see this in motion at this point. Final judgment on the graphics for me happens then. The shots are extremely inconsistent in quality (in my 3D knowledge-lacking eyes) otherwise.

OpenCanvas 1.2 is freely available in some form, and is supposed to be pretty great for this sort of thing!

edit-
and khris, try
http://www.groupboard.com/products/
it's not even as good as mspaint, but it's fun if you just wanna scribble stuff with other people in real time

Thanks for the tool suggestions! Though, I was mainly curious if any of you guys would be interested in forming the 'online sketch group' that I mentioned in the post. 

This is for Nitram, because I know he absolutely loves Inuyasha.

Xion: Ah, it's quite a relief to find out that you liked them! Glad you do, as they were hella fun to work on.