Thanks for your comment! Well its a lot of work but the simplest way to do it.
1. Make your character pictures to be selected, (1 char per BG pallete) and place them on your screen.
2. Create a Variable to keep track of the Player Select.
3. Create Input behavior that check the number of the Variable and when it changes you make the main players BG pallete in the colors you want, and make the other BG pallets with grey colors.
The rest I did is I used a monster to overlay the graphics to get more color on the character who is in selection. And showed another monster that is the chart to show the attributes. Then I have the player, and since the player is PERSISTANT I don't have to worry about losing my character setup (each character is a direction in the PLAYER). Also pallete swap has to happen too.
Then a bit more complex stuff was adding code to the extrascreen load to keep loading up the correct colors for the character, I used the same variable to keep track of all that.