Hands change format when changing color

the hand layer has the outline and the hand color in the same layer, so when you add the instance effect it colorizes the entire layer and all of its pixels.

So remove the layer effects, and use the magic wand tool (tolernace settting can be 1-30) then click on the skin color of the hand to select it and then use Edit>Fill and select Color to choose the color you want.

Hope that helps.

cheers,

Mark