I think I found a way of getting around needing photoshop by using PEdit to convert my pal files to act files but I still am not sure how I'm messing up on this.
I have the image of the correct size and then I export the color palette and then convert it to an act file. Then I load the picture as a PNG into the unLZ. The picture loads into the game. Then I open up APE and go to 00460EF0 and import the act file of the picture I just loaded into the game. Then when I check in the game the palette doesn't match.
If I load the palette first it seems to work on the existing female hero sprite but when I load in the image of the new female hero sprite it turns bright pink and cyan again.