Completely confused with inputting Sprites into formations

[doesntmatterz]

I read the tutorials and I still cant get it. I understand about editing the sprites with the sprite editor (importing SPRS from example, "custom sprites" section of the website.) But I dont understand how to get them to show up in the formation and menu screens.

I understand how to open the UNIT.BIN and other bin however to import the pals and BMP images is what confuses me. The tutorial says to open up your battlespritesheet, where is this? How can I "just" get that left standing image for the unit.bin. I am just utterly confused, is there not an easier way of doing this? Do I have to create each pal within GIMP , resize etc etc?

Can anyone write up something easier to understand on what to do after you open the unit.bin and wldface.bin?