It's not quite that simple, lets say for instance - I want to replace Russia with China, what you're saying is I extract rusi.shp, make the necessary alterations under .pcx, covert back to .shp, then place in folder, done.
But, because it must be in .pcx format in the directory not .shp it cannot be paletted except by 8 bit paletting in PSP (which I tried).
I'm pretty sure if the process is done correctly there will be no quality loss or reduced colourings though.
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