When developing the iPhone version of Guardian I manually created my sprite sheets. I used individual sprites up until the end so everything was pretty much set in stone by the time I created the the sprite sheet. Even then I ended up having to recreate the sprite sheet two or three times, and let me tell you, manually figuring out the texture coordinates isn’t a particularly pleasant experience. In this case I believe I made the right choice. There were few enough sprites that I would have spent more time creating the tool than I would have saved.