I've finished.
Since your were using the DayAndNight the ROM wasn't loading from the standard table!
It turns out that there was ANOTHER PALETTE TABLE at 0x1A2400, that was being loaded from.
All of the palettes are now properly inserted into that table, and run wonderfully in game.
-You should change your settings.ini file for the palette table at 0x1A2400
As long as you don't insert any more palettes, everything should be fine.
AND... I also took the liberty of fixing a couple of other OW related things.
Since you have 32x32 OWs for the main character, the animation where you enter a name for yourself was off.
-Now it's fixed!
I also quickly adjusted the palette for the girl OW so she displays correctly,
you can still adjust the palette if you need to though, I just changed it because it was bothering me. lol
Also you'll notice that the Name your rival thing will show the rival incorrectly, don't worry.
It's actually loading a completely different sprite at 0x3E1980, so open that offset if you want to change it.
That's it, when you come back PM your email so I send you the ips :)