OK!
First step to getting correct colors in YY-CHR.
Play the ROM Zelda in ZSNES and when what you are wanting to edit is on
screen, make a save state right there.
In this example, I am going to use link
(if you want a certain monster, get to that monster in game and save
state when it's on screen).
I saved state right here.
Now, with YY-CHR open go ahead and load up the file made by zcompress
that has all the decompressed graphics in it.
Next make sure the mode is SNES 4BPP.
Now that the Rom is loaded, scroll down to where link's sprites are
located.
It should look like this.
Now, in YY-CHR go to the Palette menu, and select Emulator state
load...
The default savestate for Zsnes is *.zst* so you will want to select
Files of Type - and the second option
(which appears to be gibberish, it's actually Load Any File Type).
Now you can open any type of file. Choose the Zsnes savestate with what
you want on screen.
Now that you have loaded the savestate file, you'll notice that the
colors are still wrong.
That's because the savestate has many palettes in it, and to get to the
one you want, you must cycle through all of them
(as you cycle through, each palette is applied to the sprites, you'll
know when you have hit the right one! 
)
To cycle through the loaded palettes, you must click the Up or Down
Arrow buttons at the bottom of the program.
I've highlighted the arrows in pink in this picture.
Just click the down arrow button untill the colors are PERFECT (oh
yeah!)
And...that's all there is to getting the correct colors in YY-CHR!
This method works for all games, so if you are hacking a game that
doesn't have compressed graphics, you just load up the rom itself, and
a savestate, and have at it.
I hope this helps some, if it needs clarification on any part, let me
know.
