This is for fullscreen. It may either my video card, an allegro issue, or both.
Anyways, go to Quest > Graphics > Pallettes > then choose either Main, Levels, or Sprites. Lets go with Main.
Click grab and load the image file. When I see the image and the box on the right for available pallettes to choose from, while ZQ is in fullscreen, both the selection highlight and the mouse cursor flickers and goes invisible.