Palettes are something that you use with 8-bit colour modes. I recommend using 16 bits (or higher). The savings in space and speed aren't worth it today, so I won't go into detail.
Parallax scrolling is when different parts of the background is moving with different speeds. A pretty useless effect, but it can look nifty. (I'm using it in the game I'm making, but I also let the player turn it off to improve performance on older machines (200MHz).)
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