Many people have been having palette problems so i figure i'd post how ive gotten characters graphics to appear correctly..
Making SmashGp characters isnt that hard one you know how to avoid that annoying palette problem.
Heres how I do it:
1.Get spritesheet for the character that you want to make.
2.Open 2 windows in ms paint
3.load the spritesheet in one window and a small new pic in the other window
4.copy the first frame that you want for your character into the new pic.
5. resize the image until there is no unecessary space around the character.
6.Fill in the backround with color 255 (Its a light blue, on the bottom row, fifth from the left side)
7.Save as 256 colour bitmap
(Be sure to name it with the first three letter repesenting yourr character because if you dont and someone else named the pics for their character the same as you did you'll have rpoblems with your character randomly turning inot theirs.
8.Repeat for all of the frames of animation that you need for your character.
As for using Charedit, you should be able to figure that out by reading the pdf...
btw, I'm working on viewtiful joe...