Palettes and Shp editing

[embis]

Two questions:
1)My edited shp file appears in ShpEd as some grey lines and squiggles which bears no resemblance to the beautifully crafted graphic I spent hours editing. what might I have done wrong?

2)I see in the design folder there are a choice of different palettes, a note in the graphics folder says "The ONLY .PAL file you should use with SHPEdit and the WinSPMBT SHP files is WinSPMBT_Palette.pal", pretty catergorical but, I cant get Paintshop pro to load WinSPMBT_Palette.pal.

Can I use JASC_WINSP_ICON_PALETTE.pal...ok, I probably already answered that question above, but i thought I would ask?