Yes, I do this quite a lot with sprites. It is very handy, for fonts, for lots of item images, for animations. Lots of uses and it's quite straightforward:
set sprite texture coord spr_cur,0,xa#,ya#
set sprite texture coord spr_cur,1,xb#,ya#
set sprite texture coord spr_cur,2,xa#,yb#
set sprite texture coord spr_cur,3,xb#,yb#
To calculate the XA etc parts, I would use a grid reference then convert, like say you want image 4,5 on a 8x8 grid...
x=4
y=5
sz#=1.0/8.0
xa#=x/8.0
ya#=y/8.0
xb#=xa#+sz#
yb#=ya#+sz#
Untested, but I find that's the best way to work, especially when you want to use different grid sizes.
Remember to size your sprite after creating it, then set the UV coords, and then I'm sure you'd even be able to paste the sprite - although it might be easier to use sprites. It depends really, but having entities moving around might be easier than doing it all yourself with paste image. Plus you can do all the other spritey things, like change colours, rotate, fade, scale... lots of handy things for GUI's, inventory screens.
I think it's all win.