Hello dacsdragon, cool design!
Some thoughts.
(PS: I didn't know the sprite size limitations!)

(Not quite happy with the highlights, needs a lot of refining, but I hope it helps.)
Your colors look a bit too blown out, I'm being a little conservative with them.
As for the alt-designs, there's a million ways you can do them. Waiting to hear back so we can do more designs \o/ G'luck
And here's Draco's palette if anyone else is interested (NES-NTSC)
