I don't think they use a palette in Runaway.
How do you handle the background images?
In 16-bit images one word (2 bytes) usually are made up of RGB (565) components, where 5 bits are used for red, 6 bits for green and 5 bits for blue.
You can send me a raw image to john_doe(at)techie.com if you like, I'll have a look at it.
Long Live Akatosh
And All The Divines