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It's where you multiply your X- and Y-values by 256, so you can have greater precision in dealing with them. For example, if you draw the sprite with Pt-On(X/256,Y/256,Pic0), you can add 128 to X every frame and it'll look like your sprite is moving "half a pixel" per frame.Hope that makes sense. I'm writing a tutorial on it as we speak
(myself, I haven't inflated by 256, even *64 seems like more precision than you need with such a small screen )