Your sprites are 16x16? That's pretty wee..

In Crashblock, the character is 50x100 and with the sprite animated with Daz Studio, it was small and hard to see. Poser @ 16x16 will be impossible, even 32x32 will be tough. You'd be better off hand drawing simple animations if they're that small 'cos you'll miss out most of the detail anyway.

If you're using OpenGL, I'd use something like 64x64 and scale down.

As far as kit for Rotoscoping is concerned, all you need is...

a) A video camera
b) A tripod
c) A Tape measure ( to make sure all your videos have the subject the same distance from the camera and so you can measure footsteps etc)

d) Some software to extract images from the AVI (I'll update with a link to the software I use later)

e) A Graphics App, to draw the sprite over the current frame (this can be something like Poser, Milkshape etc)

That's it really.

The guy who made Another World had a lot less.. He had a Video, a GenLock, A Camera and an Amiga500 plus some software he'd written himself. Oh.. yeah, and a Ton of patience