I am using Club Crimson's Paper Mesh to recolor these papers into Yu-Gi-Oh cards.

Whenever I place down the recolor on a surface it looks fine. However, when placed on the ground it shows a faded gray outline. Is there any way I can remove this outline from my recolor?

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First of all, it's very difficult to see in the pictures. Do you have larger pictures, or maybe you can upload the file, or link to the original file so it's possible to figure out how it's supposed to look?

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Usually if an item has an outline you don't want, it has to do with the TXMT settings, the texture, or the mesh.

The texture needs to be a PNG with a transparent background where you don't want anything to show (or DDS file with an alpha where visible parts are white, and hidden parts black).

The texture needs to be imported with DXT3 or DXT5 settings. You'll need the Nvidia DDS utilities plugins for this.
(tutorial, you just need the top bit with links and plugin info, and DXT info about halfway down: https://poppet-sims.tumblr.com/post/54039893647 )

The TXMT need to have these settings (when there are just "cutout" pieces, no transparency)
stdMatAlphaBlendMode = none
stdMatAlphaTestEnabled = 1

The mesh needs to be flat, or have two flat pieces back-to-back. If it's got sides (like a box) it won't work if you make it smaller via the texture, and the UVmap often won't allow for it, either.

Will these pictures work better?

Those are a lot clearer, yes.

If you mean the grey, bulky outline in pic 2 and 3, it appears to be the shadow.

If it's the straight, grey outline in picture 4, it's part of the picture/texture.

Yeah I'm talking about the shadow. How do I remove that?

Open up the mesh file, then the GMND, find the line "tsNoShadow", and change the value from 0 to 1 (the subset/s you want to remove the shadow for). Commit and save. You'll have to rebuy the object ingame.

If you use the slaved/repo'd files, you'll have to fix all of them if you don't want the shadow for any of them. The outdoor shadow shows all the subsets minus any with the "noshadow" setting.

The mesh needs to be opened in SimPE right? I'm not seeing any line about the shadow when I click on the GMND, is there a certain section it is under? I clicked on GMND under Allres and I was looking at the plugin view.

I had a look at the files, and seems the entry needs to be added to the GMND.

(Be in the first 0x0 blocklist)
GMND --> Content tab --> cObjectGraphNode
--(click) Add
--Enabled: 0x01
--Dependant: 0x00
--Index: 0x00000003 (this number should always be one up from the last one in the list. If it's 9, the next is A since it's hexadecimal. It adds a new number reference to the Blocklist dropdown. The repo'd files will have a different number).
--Click "Commit" after this step - if you forget to add these steps the object can crash. You can do everything and commit at the last step in the GMND if you feel confident, but adding here as a "just in case".

Edit Blocks tab:
--Scroll to "(cDataListExtension)"
- Click "add"

Go to the new "(cDataListExtension)" in the Blocklist
--in "Name" to the left, write "tsNoShadow"
--Choose "Value" from the dropdown list at the bottom, change the number to 0x00000001
--in "Name" to the right, write in the subset name for your object ("sculpturechinavase_design" in your case - you can copy it from the GMDC or SHPE)
--Commit, and save.

Rebuy the files ingame.

Thank you so much! It worked! I had literally scrapped this project because I couldn't figure out how to make that shadow go away.

I only changed one of the meshes yet the shadow doesn't show for any of them. So does that mean if I don't have that 1 changed mesh, that the shadows will show for the rest?

Thank you again.

I think you have to change all of them, but I'm a bit unsure (could be the repo'd objects are also borrowing this feature from the master item somehow).

Are you checking the objects outside? This type of shadow only appears outside when you have shadows turned on. Make sure to check on something entirely flat, like directly on theh ground or a floor tile, and not a rug (rugs can sometimes hide a shadow).