I've looked around for this, but I downloaded one of the theme files to help start my game, It was the space one or something like that... Well the problem I have is that all the graphics inside each of the Character folders are all .pcx files, and AGS doesn't want to import them as sprites.
Is there something else I'm supposed to be doing with them, I'm a little confused.
Are you talking about InstaGame?
About importing pcx: it's no longer supported; google for IrfanView, it's freeware and doesn't only show pictures but has a nice and very customizable batch conversion feature. (Allowing to convert the pcxs to pngs in one go.)