Taken from the old Last Moon board, All credit goes to RakshaWw who originally created the thread
Easy Last Moon Preset Tutorial
Even if you've made a preset before, you may want to read over this thread since making them for LM is slightly different than what you may be used to.
Under each step is an image. The links are white so high-light the whole thread to see them if you need to.
1) Find your Last Moon0.3 folder, located where ever you installed the game to.
2. Go into the Preset Materials folder, located in Game > Media > Materials > Scripts > Presets.
3. At the very top of the list in there is a 1.PS_Character file. Open it with Notepad or another txt editor.
This is the Material file for your preset, where all the coding side of your preset goes.
4. Edit all of the 'Character' parts to your characters name.
This does not include the actual file name. Keep it as 1.PS_Character for now.
4.5. If you want to add extra codes to have transparent, glowing or animated/scrolling preset textures, look at the second post on
this thread(Will add later).
5. Save the file, keep it open if you want/can.
Go into the 1.UVs folder, located in Game > Media > Materials > Textures > Presets > 1.UVs
This folder contains all of the UVs used in LM.
Note that CharacterBody2Tex is the UV for the Original body, but CharacterBodyTex is the UV for every other body.
If you decide to use the Original body to make a preset for, change the 'texture presets\CharacterBodyTex.png' part in the MATERIAL file to 'texture presets\CharacterBody2Tex.png'.
You can click on the More UV Maps browser icon to get links to more specific UVs like UVs for different heads, wings, manes, tails etc.
6. Rename all of the images to your character name.
7. Copy/Cut all of the images and paste them into the Presets folder.
8. Open the UVs with a image editor program (Photoshop, Gimp, etc. Sai and MsPaint won't be best for presets).
Color the images to what you want your preset to be.
Save once done, they should be saved as .PNG files into the Presets folder, replacing the ones you pasted in there from the 1.UVs folder in step 5.
9. Go back into the Game folder. Open the Preset.Campaign file.
10. Edit the 'Unit_Create=PLAYER,Unit,Body1,Head4,Mane16,Tail15,Wings4,PS_CharacterMat,Tuftless' line to include the right body parts you want to use (more information on this is in the post below this one). Replace the PS_CharacterMat with your characters name.
11. Open the game. Click on the Testing button. Click on the Preset button.
Your character should now have your textures on it. If yes, edit your textures to your desire. If no and your character is plain white, read over the previous steps.
12. Once you're happy with all of your preset textures and you're done, create a new folder some place you will remember (/documents maybe would be best)called your characters name and copy and paste all of your presets textures into that folder.
13. Go back to the LM Preset Materials folder. Rename 1.PS_Character to remove the 1. and replace Character with your characters name.
Then copy and paste that in to your folder.
14. Your preset is now all done and is correctly formatted to work in Last Moon.