I have found, on much more than one occasion, that delivery requirements are just wrong. There's usually a little back and forth with the client, with me explaining how it should work, and them saying, "ok, your way sounds good to me." My guess is that the "8-bit" part of the equation was wrong.
Sometimes, I think the young interns who grew up making web videos are the ones writing the delivery guides. Wow, now I'm venting... Sorry, nice interns, you are all great and you will all rule the world one day.
Good luck with your project, Chris.
Michael Garber
5th Wall - a post production company