I will give an example here very simple. 
1° have in hand, all the sprites of your char. 
2° the program Macromedia Fireworks. it can be any version. 
now the program is in the version 9 (or Cs3) if I don't make a mistake..



but for that example, I will use Macromedia Fireworks 8. 
I will use as example my char kakashi..   
all know, that Fighter Factory works with images bmp or pcx. 
that tutorial will help people that has difficulties in working with images pcx. 
 
we will begin. 
execute Macromedia Fireworks 8. 



open a new window, and set up your sprites.



to do the palette, we know that should have all the images of our char in hands. 
with that, we chose one with of bottom. geralmete, the makers use color pink (255,0,255).