Well since I can't change item textures for some reason? It would kinda be like the blind leading the blind, but I guess I can push you in the right direction.
First, you need some type of art tool I downloaded "the gimp" since it was free and a very good art tool.
Second, you need the ARC explorer and the TEX viewer. You can get both at this site
http://elrath.com/tqw/wiki/index.php?title=Main_Page
Third, you need to know how to find the exact names of the .tex(s) you want to edit. In this case, at least for me, I used the "art manager" and "the editor".
Forth, you need to know your way around the titan quest folders.
We will be changing the skin texture(s) of the female pc
Step 1: Open the ARC Explorer. File-> Open-> C:\Program Files\THQ\Titan Quest\Resources\Creatures.arc(for pc editing). Once in Creatures.arc on the left hand side is a list of all the creatures in the game including the npc's and pc's. Choose pc\female and a list will pop up on the right hand side. This list has all the tunic dye colored textures and the bmp texture. It also has the meshs which we can't alter yet. To keep it simple just highlight the femalepc01_white.tex 349692 bytes. At the top left corner select "Extract" then just select "Selected file". Save it to the folder of your choice. If you want to do the same thing for femalepc01_whitebmp.tex this is the bmp texture that adds a little depth to the original texture.
Step 2: Open up the Tex viewer. File-> Open-> Then find the file(s) you exported with the ARC explorer. The go to File-> Export then save femalepc01_white.tex as femalepc01_white.tga. We are changing the ending to .tga so that we can re-paint the texture with your art tool in my case "the gimp".
Step 3: Create a folder in your C:\Program Files\THQ\Titan Quest name the file "pc" in the newly created pc file create two new files the first "female" the second "male"
Step 4: This is probable the hardest step. Re-paint the texture with your art tool. When you are all done save the file(s) exactly how you exported the file(s) in this case it will be femalepc01_white.tga Save it to the C:\Program Files\THQ\Titan Quest\pc\female
Step 5: Open up notepad. Lower left hand corner of your screen is the Start button. Go to Start->Programs->Accessories->Notepad In notepad copy this:
texturecompiler "pc\female\femalepc01_white.tga" "pc\female\femalepc01_white.tex" -format .dxt5
texturecompiler "pc\female\femalepcskirt01bmp.tga" "pc\female\femalepcskirt01bmp.tex" -format .dxt5
This should come out as two lines. What it does is changes your modified .tga file(s) to .tex file(s)
Note: If you did not alter femalepcskirt01bmp.tga then go ahead and erase the second line in notepad.
Now name this file(I named it (femaletga->tex.bat)) and at the end of the name add .bat then save it to your C:\Program Files\THQ\Titan Quest folder
Note: you can always go back in and alter the contents of this .bat file.
Open a new notepad and copy and paste this into it:
archivetool "c:\program files\thq\titan quest\resources\creatures.arc" -replace "pc\female\femalepc01_white.tex" "c:\program files\thq\titan quest\resources\"
archivetool "c:\program files\thq\titan quest\resources\creatures.arc" -replace "pc\female\femalepcskirt01bmp.tex" "c:\program files\thq\titan quest\resources\"
Again, erase the second line if you didn't alter femalepcskirt01bmp.tga
Name it and at the end type .bat(I named it(femaletex->game.bat)) then save it into your C:\Program Files\THQ\Titan Quest folder
What this .bat file does is imports your new .tex file(s) back into the game.
Step 6: Go into your C:\Program Files\THQ\Titan Quest folder and double click on your first .bat file(femaletga->tex.bat) a black screen will quickly flash. Now go back to your C:\Program Files\THQ\Titan Quest\pc\female folder and see if a new .tex file(s) where created with the same name(s) as the original except the .tga turned back into .tex Now, go back to C:\Program Files\THQ\Titan Quest and double click on the second .bat file(femaletex->game.bat) again a black screen will quickly flash.
Step 7: Start Titan quest with a female character wearing a white tunic and see your texture changes. Repeat steps 4 and 6 until you get the desired look. You may want to save alternate versions of your new textures. Just name them something else but remember to rename it exactly what it was when you extracted it with the arc explorer before putting it back into the game. I hope I didn't make any errors and I hope this helps.