Dudeman,

You need to go into the VV folder on your harddrive. Mine is located at C:\Program Files\VirtualVillagers_at. In the images folder you will find .png image files. You would open them up in a graphic editing program (i.e. photoshop, etc) that is capable of saving them in the same format, then just edit, save, and restart your game. Warning: make a backup of the files in a different folder before you edit them just in case something goes wrong.