For example the character Eddie. I would like to take his upper body shirt and edit out the wording "sic life".  I am trying to do this with Photoshop but can't seem to be able to export out the upper body part and then get it back into CTA.

Any help appreciated.

Since they are sprite based characters, you need either Flash or Draw. You'll have to export out the movie (at least two frames) as a SWF, then import that into Flash or Draw, edit the body part, export just the edited body part and then re-import into CTA. Vidi had done a brief video tutoruial: https://forum.reallusion.com/FindPost93499.aspx

Thank you for the help!

Just to follow up and thank you again. The video tutorial you linked was great and I was able to edit the clothing of my character.  Can't thank you enough for support!