DPaint is the one everybody used for sprites back in the day. Save it out as an IFF and then use kefren's IFF converter so save it out as a raw file so you can 'incbin' it in your code and set up the palette in your copperlist. Try to have each sprite or frame ending on a 32bit boundary to make blitting easy. I used to draw a 32x32 grid in Dpaint before starting on drawing the sprites then erase it before converting.
