This is looking fun! I'd be screaming all the way through from falling in holes :D
Colors look fine now. 8-bit-ish so you'll hear no complaints from me :)
Whenever I get stuck for a color palette I seek out the past for inspiration! I'm having a wonderful time learning to use the NES color palette to it's full extent right now. Everything is a learning experience no matter how much you already know!
Keep up the excellent work!