How to use sphere's editor to create spritesets.
This is very vague at times, sorry.

File > New > Spriteset.
- The above means to select the menu saying File, then select the submenu saying New, then the item saying Spriteset.
- Remember that for all the stuff I'll say later.

We get a blank 16 by 32 spriteset.
Let's resize it before we go on:-

  Spriteset > Resize Spriteset.

  Width: 16
  Height 32

  OK / Cancel

  Easy.

Question: Can you see the Spriteset Images window?
  If you said no...
    View > Palettes > Spriteset Images.

Okay, currently you have one image in the spriteset images list.
Let's add another.
Right click on the purple box, and choose "Insert Image"
Now you have two images.

(Repeat this until you have enough images to do what you want.)

Okay, draw on one of the images.
Just a blob of color will do for now.

Left click on one of the images in the spriteset images list.
Then click on one of the frame boxes.

e.g. Click the black box next to "north"

Select a green from the color pallete on the left and draw a splash of color.
Once you've done that, click on the Frames tab at the top to go back to the frame view.

You'll now see that all the frames have the same green blob.

Select a different frame, by left clicking once.
Then click on the spriteset images, and the frame you had selected changes to the image you clicked on.

Basically what you're doing is telling it which image the frame should be.
If you have two frames with the same contents, there's no need to repeat the image twice.

This sounds like alot of work, can't I just import an image I hear you ask...
Sure, here's how:- 

File > Import > Image To Spriteset.
It'll prompt for an image, select the image, give it the width and height details and it'll do the rest.
e.g. If you had an image of 32 by 64 pixels, and you gave it the width and height of 16 by 32 it would give you a spriteset with 2 directions, each with 2 frames in.

Once you've imported the spriteset, you'll probably want to go around making parts of it see through, here's how:-
Double click on the frame to go into the Edit tab.
Select Fill from the Image Tools palette. (View > Palettes > Image Tools)

Select a see through color. (Just scroll that slider that has the number underneath it down to 0.)
  Left click on the image where you want it to be transparent and save.
  Or right click and choose Set Color Alpha and all of that color on the frame will become that alpha color.
  Alpha == Not see throughness or how opaque it is.
  0 == See through, 255 = Totally solid, 150 == fluffy cloud or something.

What's next after that?
Setting the obstruction base...
Click the Base tab, draw a rectangle where you want your sprite to be obstructed.
(Usually this goes around their feet.)

How on earth do I select gray or some other obscure color?

Click the color box and it'll show the windows color dialogue. Select it from there.
Or you can use a swatch:-
View > Palettes > Swatch.

Right click the swatch window and choose Default > Verge and there you have your alternative way of selecting colors.

Everything else shouldn't be too hard to figure out, good luck!