Hello there! Resident expert on Xenoverse here. The colour pallet files in the DYT control more than material colouring, They also control shadows, highlights and occasionally "texture" colours in 1-3 4px lines. You can tell which material uses which colour lines by reading the EMM files' "MatScale1X" parameter. Several materials in the games use different shaders which use the pallet information differently. For example, some materials glow in game, and they can accomplish this with a special shader type, or a heightened glare variable "MatScale0W". The EMM files can be read easily with the following tools, if you need them:
LibXenoverse EmmXML
XenoXMLConverter
Genser
Due to this weird relationship between the three files (EMB, DYT.EMB and EMM) , the models will never look as intended outside of the game. Unfortunately the only somewhat useful way of presenting these as intended would be to cut the alpha layer and put it in as an overlay (inverted so that the white lines are black), and then paint the background of the image with a sample of the midtone colour from the appropriate line in the DYT.
Hope this helps!
- Komodo
LibXenoverse EmmXML
XenoXMLConverter
Genser
Due to this weird relationship between the three files (EMB, DYT.EMB and EMM) , the models will never look as intended outside of the game. Unfortunately the only somewhat useful way of presenting these as intended would be to cut the alpha layer and put it in as an overlay (inverted so that the white lines are black), and then paint the background of the image with a sample of the midtone colour from the appropriate line in the DYT.
Hope this helps!
- Komodo