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When I get to the area that let's me edit various charactors or reset skills, one of the options is blacked out and I can't select it. I assume that is where I need to go but I dont know how to unlock it.
I don't think that's it. I don't have my game handy but the option to create a character is available from the beginning. Just start clicking on all the icons until you see a background screen with a generic male and female character. That's where you create a warrior.