I agree with you Phil, this should be documented more thoroughly.:hogsign:
If you open up any palette directory and select the spreadsheet mode, there is a column all the way to the right side that is "Used". Any palette that has a "No" (no cues refer to it) will be deleted if "Strip all unused palettes is selected". If there is a "Yes" (at least one cue refers to it) then it will be unharmed.
