If you have questions about rules anything, post them here!
Well, if you play CHILL MODE, the rules are very relaxed, do whatcha want.
If you choose the other modes, you should not change the data (change pitch values), but if the engine you use supports playing things faster or pitch-shifting itself, that is probably okay. But the spirit is don't change the actual data, nor add detail to things.
FOR HARD MODE:
You can change the color of already existing colors with PAL.
You cannot add detail.
The only way to change size is with SSPR drawing the sprite bigger. You should not be editing any pixels. But scaling the existing sprite to look bigger onscreen with SSPR is fine. You can also use parts of sprites with SSPR or use CLIP.
Are the MIDI files inside 2_ThingsOfNote.zip just part of the ARG or are they free for use inside a game jam game?
I'm using a descendant of ye ole SCUMM engine (version 6) and I haven't yet gotten around to adding digital audio. I guess if it can't be helped, I'll just convert the mp3/wav files into glorious 8 bit mono Creative VOC.