2 questions that I really need help

First off - if you're saving it as a 256 color bitmap, it's going to have .bmp as its extension, not .png. You can import it like that. Secondly, are you actually importing it into the Tileset folder? While in the resource manager, on the left side, you want to click the "Chipset" folder BEFORE you try importing. (Why is it called Chipset and not Tileset when it comes to the folder? Lazy programmers).

As to prerendered backgrounds, err.. that's the whole subject at hand, right? Unless we've had a major communication error, that's the whole point of using the tilesets and such..

First off - if you're saving it as a 256 color bitmap, it's going to have .bmp as its extension, not .png. You can import it like that. Secondly, are you actually importing it into the Tileset folder? While in the resource manager, on the left side, you want to click the "Chipset" folder BEFORE you try importing. (Why is it called Chipset and not Tileset when it comes to the folder? Lazy programmers). As to prerendered backgrounds, err.. that's the whole subject at hand, right? Unless we've had a major communication error, that's the whole point of using the tilesets and such..

Sorry, When I was going through your walk through I thought you were showing me how to make a prerendered backround out of existing tilesets, but i got it.

I have another question.
On step 7, how would I make it so I can see what exactly I'm editing. I painted the whole screen the Pink color, and now I want to add the water where the mountains and oceans are, but I'm having to guess where the oceans are, and test play it to see weather I put the water blocks where the actual oceans and mountains are.

You can't unless it's a 15x20 map and the image is 320x240. I honestly haven't tried a 30x40 map and 640x480 image yet (and I can't because I'm in college at the moment). Anything else will give you the "pink background".