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To change the color of the terrain not the actual terrain itself do you use paledit?

I'd say negative.

than do you know how to do it?

each palette is fixed color, so u would make images with each colors
but may make change colors set of pallete with Hex editing of EXE file

if u want get about pallete, hre is some information of pallete
that would give some knowloge to u

http://www.staredit.net/index.php?showtopic=27808

http://www.staredit.net/index.php?showtopic=28604

Basically Paledit used for changing Pallete format to use what u have image editor
or GRP editor
and Paledit make change each colors of pallete color set
but that could use for only creating images and view images

So for example you could make jungle pink or something?

yes it could make change colors of image but that should make with fixed colors
it say is could make to similar colors used in limited colors but if u want other colors what use different colors of each pallete that will not changed colors
even u make colors with what image Editor, but that will displayed to original colors of pallete color set

i say again, read this tread than u would get how pallette make to work for Graphics

http://www.staredit.net/index.php?showtopic=28604

Alright i think I get it now