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If you're still looking at your emblem in the content browser you can save its reference by right clicking it and selecting 'Copy Full Name to Clipboard'. Simply open up a character model, paste (or green arrow if you reselect your emblem in the browser) your emblem into the 'Emblem' texture slot. You can adjust the colours with EmblemColor1 through 3.

Tips

Leave a little padding

You should leave at least two pixels of black on all borders. When we set the texture to clamped that means that rather than tiling the emblem what we're going to do is take the border pixels and stretch them outside of the texture space. With your border pixels black it appears as though the texture only exists in one spot, if you have other colours on your borders you'll get undesired lines stretched across the model.

Too much detail

While you're certainly able to paint with a 1px brush, very fine detail tends to not look good on emblems. A combination of compression, texture filtering, and mipping (distance based lowering of texture resolution) muddies overly fine detail and creates artifacting. Large, bold details hold up better in game and are more easily identified from a distance.

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