Because when I get too Sonic's eye texture I hit y too it and it said texture created and then it just stays there!? It doesn't go anywhere just stays there...
You must've goofed up somewhere, because I was successful with step 2 when I edited Sonic's eye to have a white background. After waiting for like hours I checked the folder and there was a pac and pcs file o_0 Idk I'm going to test them in Brawl
Edit: The pcs didn't work right...I'm esperimenting with SmashBox too see if I can import the eye texture in correctly.