I forgot to tell you that when you're in the color table area after indexing, you right-click on any color in the color table and select Rearrange Colormap. Drag one color box and swap with another. After you finish swapping, click OK or press the Enter button to go with OK option if you can't see OK button in the screen. After that, then save it as a palette. It can be a palette file or an image file. I always use an image file as a palette for character sprites.
Also, you need to make sure that the sprites of one character have the same color palettes. If the colors for your character are messed up, that means different colors conflict with each other to create a messed-up colored character. Do you have a copy of your original which you can possibly redo if your character sprites in your char folder are messed up?
EDIT:
1bit? Do you mean 16bit? If 1bit, please don't use that because it shouldn't be typed like that in video.txt!