User blog comment:Dewott the epic/Fighter Factory 3 problems/@comment-3495717-20141013143100/@comment-3495717-20141013152014

Are you sure? That seems a bit odd.

In any case, using that same Palettes section (I've shortened my post considerably, in case you haven't already seen it), click on the button with the mouseover text of "Add one or more palettes", click Yes when the dialogue box shows up, locate your Dewott sprite, click Open, change both the group and index values to 1 (which will generate palette group 1,1). Save the sprite file.