Nphyx: I think everyone would be interested in what Tana works with when it comes to hardware and software! But I think she's previously mentioned that she works with Photoshop, and given her art background it's easy to presume she uses a tablet as well. I think it might be mentioned on her website, but not sure.
Beyond what sort of tablet, the hardware doesn't particularly matter unless you're designing those hundred plus layer art projects thousands of pixels across (and then you'd really want one of those fantastic flat tablets built into the table!), though.
I agree about Photoshop. I just don't like it. I personally use Graphics Gale. The only drawbacks I face with Gale is that there are no brushes with anti-aliased edges and the eraser function on my Wacom 2 Tablet pen is ignored, treated like regular drawing instead. Aside from that I've found it perfect for pixel art.
Tana: Thanks for sharing how you drew the templates. I've underestimated planning stuff out on paper first. It'd save me a lot of time to have a better idea like so in advance, instead of fussing so much while drawing (and redrawing) to get the design right. Silly me. ^_^
Angel: Wow! That's fantastic, love how you handled the folds and textures. *saves to hard disk to study later*