So yes you're right, the texture can be DIFFERENT width and height, but both width and height must, individually, be a power-of-2 size, e.g. 64x128, 256x2048, and can also be the same width and height e.g. 256x256 etc.
Thanks for the confirmation. I couldn't lay my hands on the red book to confirm it, but the OpenGL site seemed to be on point.
Does that mean the smallest size is 64x64 (until it gets resized of course)? So all of these 32x32 sprites would get resized to 64x64?
Yeah, that's a surprise to me too, but it appears that way.