Indexed images wrong palette

[mills32]

Hi, I was planning to make a program to convert indexed images for a play station 1 project, and I found this one.

I might try to fix it myself, but I just wonder why the program is not getting all the palette colors from indexed images, it only rearranges the colors used for the image and discards the rest.

I want to use indexed images to achieve palette cycling effects on textures, and also because I think 4 and 8 bit textures, are faster (are they?).

Thanks!.