@Kei : Haha, thanks, but I just know how to use Photoshop clean up some images, I'm no artist. I don't think I could make something that anybody would actually want, haha.
@A17 : Yeah, my .tga files are actually very clean (not to brag or anything), I made sure that I could get off as many stray pixels and any sort of edge grain or noise as possible. Here's how I make mine:
1) Open up Photoshop with 3 New Documents; 1 the size of the picture I'm using of the model to be made into a .tga (in my case in-game pictures off my SD card, so 640 x 480), 1 for the Big TGA (128 x 160), and one for Small TGA (48 x 56).
2) Use the magic want tool with the highest level of tolerance possible and select the background of pictochat without actually selecting the character (because no one wants their character erased, haha). Sometimes the tolerance can be as high as 50, or sometimes with characters with greys if you pick a bad area to take a picture you might have to set it to 3 or something. In that case, the following steps are more time consuming.
3) After having deleted all the non character stuff, using the Marquee, select the character and copy pasta him to the Big TGA. Resize using Ctrl + T, and Shift Click to resize them.
4) At this point, different people do different things. Here's what I do:
- If there are remnants of left over stray pixels, delete them.
- If there are pieces of your character that are gone, either redraw them using Eyedropper and Brush or just go back and re-Magic Wand them.
5) Index the colors. There are guides that tell you what you can put, but my experiences tell me that CUPASH decides what it accepts with individual pictures, so like you said you can normally get away with 72. However, I use 120. If CUPASH rejects it I go down in increments of 10.
6) Go into the color palette after having indexed it. Select the Transparent spot and change it to 255, 0 , 255, or Magenta. So yep, I use Magenta. IT IS IMPORTANT TO DO THIS IN THIS ORDER, ELSE YOU'LL GET PINK BORDERS. The indexing will average the pixels by proximity and gie you many pore pinks than you ever wanted.
7) Here is another step that I do that eliminates some noise and off colour pixels. Select Magenta (255, 0, 255) as your foreground, Zoom in so you can see the pixels at a fairly large size, and go through and take that to any that stand out a lot. If there are a lot, select the Eyedropper and instead of Magenta'ing them, try to fix them.
8) Save.
Now, normally, if you Magic Wand efficiently and fix up problems before you index and move them, you don't have to do any post editing. It generally took me about 3 to 5 minutes a character on a run to resize and clean them up, with some characters taking 15 minutes on a choppy or otherwise noise interference run. It honestly may be easier just to get another picture somewhere to start with. Since I took EVERY picture (except Shadow, I liked his online Stock Photo) on Pictochat on my own Wii, I knew how to quickly get the images I needed.
Oh, and I made the strap loader and 4 Ways to Play loaders.

They can also be seen in the initial reason for this post:
VERSION 1.1 done!
What's new : Strap loader, 4 Ways to Play, Game and Watch colors and CSPs, and some stages that I liked from others put on. Also, Auto Ruleset code implemented to 3 Stock, Infinite Time (yeah, yeah), Stock, Turn Stage Choice, and then other "normal" options. NO GAMEPLAY CHANGES MADE. I am kinda against that. I am considering No Tripping, but I probably won't do it.
Wanna see it in action? Sure you do!
http://www.youtube.com/watch?v=ixk5JXnwNTw Enjoy.
Sooooo, many people have asked if I can upload it all. Answer : yep. I'll do it after classes today.
Keep shooting me questions and feedback so I can do other stuff and see what people like and don't like too!
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One last disclaimer for people just stopping by and didn't read my tl;dr post:
I don't make Textures, I do make CSP, and I do arrange CSS using spunit262's code as a base.
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Enjoy!