Torr brought up some interesting information regarding this problem today that he recommended I add to this report.
<Torr_Samaho> The important thing missing in your bug report is the fact that the PNG sprite properly translates to every color except black.
<Aabra> what do you mean
<Aabra> like the colours on the skin?
<Aabra> when you select the colour? or what
<Torr_Samaho> Yes
<Aabra> I didn't realize that was relevant.
<Torr_Samaho> If you select green, red or blue for example the png sprite looks perfect.
<Aabra> well - I didn't know
<Aabra> that black didn't look correct either
<Aabra>

<Aabra> what colour does it come out as?
<Torr_Samaho> I think cyan and black are switched.
<Aabra> hrmm
<Torr_Samaho> The cyan is appearing at places in the sprite that are originally green.
<Torr_Samaho> I came to this conclusion when trying to make the doomguy model sprite translate properly.
Hopefully this can help you Graf.