Graphics Gale hands down. Paint is useless, and when working with palettes and sprite art, you simply should not be using it. You can, but you're not doing yourself any favors. GG is awesome. Supindahood swears to Photoshop, but he's just a sillyman. GG all the way.
Nonsense, I work in MS Paint with all my spritework, and haven't had trouble with palettes as far as creating them goes. If you're specifically talking about restricting the palette for ZC limitations, all you have to do is open the finished product in Graphics Gale, check the number of colors and make sure it's <= 15, then save it as a 256 color BMP, and it should be perfectly fine, colorlossless. Why not a 256 color PNG x-x. (BMPS are so bloated.)
Otherwise, I feel every other program is bloated if you're trying to work pixel by pixel. You don't really need layers, blurs and all that other extra stuff used for different types of artwork. If you really need to work on top of a base, you just copy and paste it to the side, a perfect gridsize over, like animation frames, for a strip of animation. Such as this recent spritesheet made below, all made within MS Paint.
MS Paint gives you everything you could possibly need for just DRAWING sprites, including palette creation, but minus palette management. Palette management can be handled with Graphics Gale if you absolutely need it, but if you aren't working in ZC, you probably won't need to.
Edited by Koh, 29 November 2013 - 07:35 AM.