OK!
So, taking everyone's advice and playing around, I think I figured it out. I have to do the following:
1) Download and install "Fighter Factory" to my computer.
2) Use "Fighter Factory" and open a selected char from the "char" files. eg) Deadpool
3) After opening the character, select "Palette" from the menu at the top of the screen and then select "Open". Choose whatever .act files are there.
4) Now, on the right hand side of the screen will be a smaller menu bar that shows all palettes that have been opened (including those from other characters, so it is important to keep track of them and close the ones that don't apply to the character you wish to modify. For example, if you want are currently modifying palettes of GREEN LANTERN but you were previously modifying palettes of DEADPOOL and didn't close the palettes, the DEADPOOL palettes will appear on the list with the GREEN LANTERN palettes simultaniously).
5) Click on "Auto apply palette" on the right-hand side menu so you can quickly view the different color schemes.
TO DELETE COLOR SCHEMES YOU DON'T WANT:
1) Make note of the file names of the color schemes you don't like from viewing them in Fighter Factory.
2) Then OPEN the char in windows and delete the ".act" files you don't want.
3) Open the ".def" file of the character and delete the lines of programing that indicate those same files. Be sure to do this because if the ".def" file starts looking for ".act" files that don't exist, Mugen will crash when you attempt to load the "incomplete" character.
Gentlemen (and/or Ladies), thank you so much for your help. This will dramatically increase my enjoyment of Mugen from now on!!! NO MORE WOLVERINE WITH PURPLEBOOTS AND RED CLAWS!!!
Again, thankyouthankyouthankyouthankyouthankyouthankyou!!!!
D-Day