Three questions:
Can we use existing photos or traditionally drawn pictures that are editted/traced in Paint?
Can we use fonts as most of our sprites and can they be custom fonts made in a Font creator of choice?
PicoCAD for sprites or environment?
Traced photos and any fonts are a-ok! If you're talking about this PicoCAD, then I'm a bit unsure as to how you would make sprites/environments with it? The purpose of the jam is to try to stay close to mainly using paint, so def keep that in mind!