ONE (1) submission only, regardless of what option/s they are.

I'll just re-answer the stuff moonblaze answered to annoy him some more

1. Yes you can put the same colour more than once in your palette. If you weren't able to Option 3 would become useless and impossible. It would be stupid with option 1, because of a waste of colours, though I would congratulate the person who managed to fill up a whole palette from a 40 tile tileset. It's very hard to do, but not impossible
No I didn't just say the person who manages to use all 256 colours will get bonus points of any kind, don't waste your time trying to find a way to fill an entire palette of 256 colours.

2. You can put the 16 colours in your textured background, but a textured background needs 32 colours. Even if you do slim it down you're gonna have a single gradient, and I already warned you about using those
Not having a textured background is not a rule, if you can manage to make one go ahead, but the possibility of one wieghs greatly against you

3. Looked back and noticed that I forgot to answer another question from frankenquist. You can't flip ANY tiles, arrows and background layer eye candy is included.

Oh by the way I'vealready got a submission, ph33r!
Hehehe, don't let that rush you though, take your time