Because Wally is not cutting it at all, I have some good stuff to add but the crappy palette handling is making it a very difficult thing to do.
And no, no high resolution textures planned other than fixing the ones that ruin my matched texturing, oh that color matching!!!
We have lmp2pcx which converts standart hexen2 lmp to pcx and tga. If you need hexen2 palette to use with wally, try the palette.lmp or the Jasc format falette under utils/palette or utils/texutils/palette.
Well I've tried both palette.lmp and hexen2.pal, even the one that comes with Worldcraft1.6a hexen2.pal and no dice.
But I have discovered later that it was my choice of colors that made the conversion impossible, so now if I add a color overlay used in the hexen 2 palette over the texture and then convert to 8bit and add to the wad file, sometimes it gets right without looking like crap, so yeah it must be hacked/compromised. But it worked in the end.