With the Nets leading 111–109 and inbounding the ball with less than 2 seconds remaining, Palacio stole a pass from Lucious Harris and threw up an off-balance shot with one hand from 30 feet away.

He eventually caught on with the Seattle SuperSonics, but was waived before the regular season start, unable to unseat Mike Wilks as the third-string point guard behind Luke Ridnour and Earl Watson.

[10] He helped the Basque team to win the national title for the third time in the club history, beating Barcelona 3–0 in the final series.

[14] On August 2, 2021, Palacio was hired as an assistant coach by the Portland Trail Blazers of the National Basketball Association (NBA).

[15] On October 7, 2021, Palacio was placed on administrative leave when he was indicted with a group of former NBA players who had allegedly committed insurance fraud.

[16] In his first international tournament, Palacio led Belize to a gold medal at the 1998 CARICOM Basketball Championship, which the country hosted.

Palacio was also a member of the team that won a silver medal at the 2009 FIBA COCABA Championship, held in Cancún, Mexico, losing in the finals of the hosts 106–103.