I'm having a hard time figuring out what the ruling is for upgrading dice for skills (when spending xp to buy skill ranks). Based on the dice upgrade rules for dice pools, any available green should be first upgraded to yellow, then if no green are available, add another green. So if your charm skill was at rank 1 with 1 green 1 yellow, and you upgraded to rank 2, it should be 2 yellow. Then rank 3 will be 2 yellow 1 green. Is this correct?

Actually, it's 2 things.

For example, if the character has a rank of 1 in Charm and a Presence of 2 (Presence is the base of the Charm skill), you take the highest of the 2 values, this is the number of dice for that skill (2), now the lowest value (Charm Rank 1) represent the number of yellow dice, the remaining are green.

This gives you 1 yellow, and 1 green.

Now, the character uses XP to raise his rank to 2. This gives him 2 dice, and both of those dice will be yellow

After a while, that character raise his Charm Skill to 3 (still have a presence of 2), it give him 3 dice, 2 of those will be yellow, the last one green

Charm 5, Presence 2 : 2 yellow, 3 green

Charm 2, Presence 5 : 2 yellow, 3 green

Hope this answers?

Is that from the beta rules? I definitely saw nothing about that in the beginner game ruleset. Thanks for clearing that up for me!

It's from the Beginner's box, Page 6, section "Applying Characteristics and Skills", I've paraphrased the text, but it's essentially the same thing. Just explained differently.

Nothing to see, move along.

Sorry useless post as aljovin already gave an excellent answer.