Yup. I wish I could find my Digi-Paint 3 manual, because it has a concise technical description of HAM mode. It's completely useless for games and the like because you can't just throw 4096 colors on the screen- if you want to go from one color to a very dissimilar one, it takes like three or four pixels to get there (depending on the difference in RGB values). So you couldn't move a sprite across the screen in HAM mode without getting some funky looking color bars. If you use Digi-Paint 3 or Deluxe Paint in HAM mode, you can see this when using the menus.