They should be if you find the right settings. It shouldn't be a mystery, someone here should know the right Tile Molester settings for N64 ROMs.
Admittedly, I don't know much about the N64 (I usually deal with PSX), but if you find the right codec and settings to use in Tile Molester and open up the ROM, you should see all the uncompressed textures. If they look discolored, it is because you need to extract the palette and load it into Tile Molester. But I got a gut feeling that it uses true 16-bit color, which doesn't need a palette.