User blog comment:Dewott the epic/Fighter Factory 3 problems/@comment-3495717-20141013143100

Are you spriteswapping another character? If you're spriteswapping 1.0 Kung Fu Man, then you're going to get his palettes, which would cause these strange occurances. Unlike older characters, 1.0 characters have their palettes contained within the sprite file (.sff) as opposed to separate .act files. If you want to get the palettes to work correctly, you're going to have to replace palette numbers 1,1, 1,2, 1,3 all the way up to 1,12 (if that's how many you want).

In case you're wondering, the palette number in your screenshot is 9000,1, which is the palette for the big portrait, not the character's sprites.