Yay!!! I can replicate EXACTLY what is happening to you Barb. Here is what you need to do:
clear the swatches using Preset Manager as you did and run the action - as you did. Save it somewhere you will be able to find it again.
NOW... LOAD what you saved. Do not try and use it from the swatch screen you have now - this is where I believe you were unable to use the Color Picker and could only get numbers?
To Load it: Select Load and when the box opens use the pull down menu at the bottom to open .act files. Bring your swatch in this way and then making sure you have the Color Swatch window visible (enable it under Window if you haven't already) you should now be able to select colours using Color Picker.
The default for me is another file type (.asl maybe?) but you need .act files showing so your swatch is visible. Also where I save swatches is with my scrapping downloads, not the Adobe default place, so I had to direct my search for .act files to that folder.
This is easy to do but hard if it doesn't show up first time or is in a different location... Can you have a go and let me know how it went??
I am excited to see if we can get this working for you!