I see a big diffference in price for blue pallets vs. regular pallets? It seems like there are just painted blue? What is it that makes it cost so much more? see this site to see what I mean.
Make sure the power plant is up and running again. (Generator is in Misty's gym in the water, click when in water to find). Make sure you have gone to the radio tower in Goldenrod city, lady at first desk answers you questions, answer them right to get a radio card. Then go to the radio tower in Lavender town, talk to this guy on the first floor, and he will give you something as well. Head to the snorlax in front of diglets cave, play the pokeflute station on the radio. Save your game, then click on snorlax and catch him in battle. Go through the cave to the other side, from here you can make you way up or down to pallet town.