There are two types of Palace servers: The Guest is Member type, this means that anyone signed on as guest has all the features registered members have. The other is the traditional server where you need to have a registration code to use all the Palace features. Some people like the old fashioned way because it gives them some aditional security.
If you can not wear certain avatars because they are not approved on a server you need to contact a wizard from that Palace, they can help you getting avatars approved.
It depends on a Palace server if you need to be a member to wear custom Avatars sometimes all you need is the registration code to get all the features back.
You can get a registration code here:
You can enter the registration code in the File menu of your Palace client "enter registration code".
NOTE: You can only enter a registration code when you are NOT logged on, so if you are in a Palace you need to click on disconnect first.
Don't forget to fill out the name field as well.