okay I need to know if there is a reason why when I put a hi-res sprites into mugen (ex. Blazblue characters) they are badly mis-colored and I need to know if this is a problem or what. because I plan on making a Taokaka, and this very thing happened to me, and I'm scared
I'm not the character guy, but maybe your sprites are incorrectly indexed. OR the original source is just that bad which is something you can't really control. Try re-indexing the sprite see if that works.