Was just in the game to double-check the above. The advanced server settings are reached from the screen that displays the actual save games; it's on the lower right.
If you are replacing the in-game character with a completely different one, then you only see the screen for choosing pre-made characters. If you were replacing the in-game char with another of the same name, then you would get two screens, and the second is where you decide between in-game and pre-genned.
Nightowl2
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