In Art/Pictures: there should be a Faces and Decals..you already have Decals.
EDIT: Also add this tutorial E_net4 and I made.
Credit Goes to Jsk and E_Net4
[b]How to add Decals into Blockland Retail[/b] (works on demo version)
[b]1. [/b] Make a .png file with [i]256x256[/i] resolution. 32bit png is recommended.
After that, make another .png file with the same decal, but with 64x64 resolution.
[b]2. [/b] Copy it to the following location: [i].../Blockland/base/data/shapes/player/decals/[/i]
[size=8pt] If you want a face decal, copy it to the "faces" folder instead.[/size]
The smaller file must go to: [i].../Blockland/base/client/ui/avatarIcons/decal[/i]
[size=8pt] If you did a face then put it in: [i].../Blockland/base/client/ui/avatarIcons/face[/i][/size]
[b]3. [/b] Nothing else to be done. Run Blockland and go to the Avatar settings.