Nope, I scale the canvas down to 100 x 100 pixel and use the pen tool with the size of 1 pixel. Afterwards I scale it to almost every resolution I like. You can find my more detailed Tutorial here: Pixel Art Tutorial in Photoshop. At the moment I use the newest version of Photoshop. But a CS4 version or lower should work too. Photoshop is way to overpowered for this purpose.