Step Six comes just before you get into "real" skill selection. the gist of it is that you choose a (my words here) personality type for your character that addresses the way he/she approaches problems and get 13 skills at 20% for "free." In the book there are four types listed: physical/combat, craft/technique, outsmart others, and persuade others. One could easily come up with additional setting-specific options, of course, but those are the canned options.
So, if you're building a straightforward martial sort, you might opt for #1 and get a couple of weapons, dodge, climb, jump, ride and so on. Or if you're thinking con man, #4 is the way to go. And so on. This frees up some of your skill points (260 points, actually!) to allow you to focus on broadening your character. Or to allow you to excel at some stuff that you might not otherwise due to limited points and skill caps at the lower power levels.
The book clearly lists this as an optional item and suggests it be applied to (paraphrased) those stalwart heroes of pulp action, space opera and high fantasy. So if you feel Step Six is overpowering you're not stuck with it being "on."
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