Is there any specific program required to make my own resources or can I simply use templates with
MS Paint and still be compatible?
you can use ms paint but it's awkward. In the downloads section of this site: http://crankeye.com/?page=downloads
it is a program called character maker 1999 which is briliant.
No, no, no. If you want to create tilesets, or characters, use GraphicsGale. Or GIMP. They are easy to use, and very, very great! :)
Also, if you plan on making your own tilesets, then you should pick a style first :)