I have seen great looking Zelda games around this resolution! I also want to announce that I don't want my Zelda game to be featured or looked at as a GB style game, nor GBA.
This game that I am about to share does not belong to me and belongs under the user of Dlbrooks33, and this is to share as an example of a successful Zelda game demo: http://sandbox.yoyogames.com/games/110882-the-legend-of-zelda-pearl-of-darkness
I know there are successful Zelda fan games, so I'm not sure why you showed me that game, but I played a little of it and it's quite fun, so thanks for showing it to me (I guess I'll have to look around YoYo games for more).
However, I don't see what the problem is with going with a res of 240x160. I mean, even that game is at that res. To be honest - and not to sound mean - but you can't use GB style graphics if you don't want your game to be viewed as GB or GBA. I don't see why it's a problem either way. That game you showed me feels like something in between the GB Zelda games and the GBA MC and it's quite fun. What's the reason you don't want it viewed as GB/GBA?
If you truly want to make a 2D Zelda that won't be viewed as GB/GBA, then you'll need to do something like Djipi is doing with his Zelda fan game "Skulltula's Amulet". Or you'd want to do something close to the FSA style, which is kind of like MC. The latest large effort OoT2D project would be a good example of that. Perhaps you could try that on the GB graphics. It's basically just various alpha blending with overlays. It gives things texture and detail. Changing the screen size just doesn't seem as effective as a graphical change, if you want it to be viewed as something other than GB/GBA.
I personally had no problems focusing on Link. I would also like to point out that the screenshots I've had shared weren't in full screen, and it's much more easier to see Link in fullscreen(don't worry)! And the reason I rather have my ratio this way is because the graphics wouldn't look strange when it's more zoomed out.
tight butthole, I actually zoomed the pics to make them full screen before I made my last post. But I was just giving advice, and you do not have to follow it. It's your fan game, after all.
As far as the homes goes, those were extracted out of ZC and I do not know of a proper way to do it. Please, if you know how to extract ZC tilesets with it's actual quality, notify me by PM. Some tilesets shows up grey. 
Since you're using Game Maker, it must mean you are using a tileset in png or bmp format, right? You should be able to simply open up the tileset in a paint program and recolor. It's very simple. I could do it if you wanted.
It's been a while, but I remember ZC does have palettes, so you have to cycle through them to find the right one. And I remember there were different ones for overworld and dungeons, so you might possibly have been in the dungeon palettes, as most of those tend to have lots of darker colors and grays.
Once I've released a tech demo of this game, and if you experience some issues focusing on Link then let me know, then I'll change the ratio. But, I think you'll find it rather easy to focus on him. ^_^
Fair enough. I'll wait and test a demo then.
