Unfortunately it differs from engine to engine. With ER, you just have to line up the paperdoll to the character and select which paperdoll is used in the item editor. For AE, there’s centering if I recall and I don’t know how it all works.
About the players making their own character… You would have to provide a base spirit to work with (of course), but that’s the simple part. The complex part that you have to code would be to have the client send the image data to the server, have the server check that it’s the right file type (don’t just check the extension), and save it with a proper number/name.
I don’t know much about vb6 file sending, so I can’t help much. However, I would suggest just using the player’s name to save the file and recode the sprite code to work with that (I like moving away from the number names).
Baannounik shall control all!
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