i made a decal and zipped and named it and its not showing in BL
No idea. Try Re-Making it, , or get rid of piece of crap Add-Ons.
Create your decals.
how?
Yes, thumbnails are 64x64. Yes, you can use 256x256.
So how big do face decals need to be?
http://en.wikipedia.org/wiki/Comparison_of_raster_graphics_editorshttp://en.wikipedia.org/wiki/Comparison_of_vector_graphics_editorsTake your pick, I recommend something free, open source, and licensed under the GPL or some similar license.