the problem i ran into, although minor, could probably be improved upon, so heres my take on it.
i wanted to set up a party inventory, but realized no one could edit handouts except me. now i have a character called "inventory". since the only difference between handouts and characters seems to be image size and player control options, why not make one form with all the functionality of both handouts and characters, and allow us to make our own categories to put them in. the GM could edit if a file is a character for chat and other purposes.