Thank you. It worked perfectly.
Details for those that are trying this: duplicate the default folder and rename it a single word name i.e., “custom”.
in /wordpress/wp-content/plugins/smooth-slider/css/skins/[skinname]/functions.php
line 2 replace smooth_post_processor_default with smooth_post_processor_[skinname]
line 3 replace $skin='terma'; with $skin='[skinname]';
line 181 replace smooth_slider_get_default with smooth_slider_get_[skinname]
line 182 replace $skin='terma'; with $skin='[skinname]';
line 289 replace smooth_data_processor_default with smooth_data_processor_[skinname]
line 290 replace $skin='terma'; with $skin='[skinname]';
in /wordpress/wp-content/plugins/smooth-slider/css/skins/[skinname]/settings.php
Lines 2 and 3 replace $default_settings_default with $default_settings_[skinname]
Reupload to /wordpress/wp-content/plugins/smooth-slider/css/skins/[skinname]/
Return to the Dashboard and Smooth Slider. Under Basic Controls, change the first item to your new skin. Save.
If you get an error, you messed up an edit. Start over.
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In-line CSS:
for those wanting to remove it, the inline CSS is added in the /wordpress/wp-content/plugins/smooth-slider/css/skins/[skinname]/functions.php
It’s scattered throughout.
Example: Look at line 161. This is one version of the <h2>.
Remove
'.$smooth_slider_css['smooth_slider_h2'].'
and
'.$smooth_slider_css['smooth_slider_h2_a'].'
This will zap the inline CSS.
Repeat where you see similar code.