The movement highlight (which I think is more light blue than green if memory serves) should only be active while you are moving the frame, it shouldn't be permanent even if you still have it unlocked (because it only highlights one frame at a time, whichever you are hovering over). I believe green is the error color meaning the image isn't loading, which will also be reflected by the image not being previewed in the art library where they define it.
Most of the time this is either file issues or where they put the file. Since it's a packaged artwork collection it is unlikely problems with the files but rather how they are being used. If we know the path the user is defining when trying to import the artwork we can likely identify the issue as to why it is failing to load.
For example, little known limitation but you ever notice that no addons have spaces in their folder names. One problem with kgpanels is the user has to create folders of their own for the artwork and I remember one incident where a user simply created a folder with a space in the folder name. As a result, the file path couldn't be used. Addon developers are familar with limitations like this however end users generally are not aware of them and can make simple mistakes like this and not realize it.
Please provide the exact path you are entering to the tga file in your art library as that will likely help us identify what you may have done wrong. I really think your problem resides there, in setting up the art library.
"In anything, if you want to go from just a beginner to a pro, you need a montage." /w TankSpot WTB Montage for Raiders.