You are both correct. I was trying to copy someone else's picture in, but ran out of time before I got around to trying the clipboard idea. I've since tried it, and it does work, though I have to maintain the number of colors, so I can't use most pictures I have available. Still, not a crisis. My main difficulty is that I can't see the standard character portraits. In all the other picture editing menus, I have a scroll-down window on the left side where I select the picture to be edited. In the character portrait menu, I have a blank white window (and no scroll bar) on the left side. I assume that this is intended to show the existing portraits, but unfortunately, my copy does not. I have no idea why not, though maybe it's due to my running Wizardry Gold?
If we can't track down the cause, I think I should be able to work around it. I can edit other pictures, so I can rename a few portraits to monster file names, edit them, and rename them back, and that should probably work.
Re: the 32 character limit: I had a feeling that might be the case (I tried adding more files, with no effect), but it's good to have it confirmed.
Thanks!