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Thanks for the reply. However, my question is not about grid size. What I need is information on how to setup a terrain brush with Tiled Map Editor. Placing tiles one by one will take forever as I have about 30 total levels to create. Below is a new link. Thanks.

I updated the tileset so that it's working with terrain tool. Please download the tileset again. :)

Thank you for doing that! I really appreciate it. This tileset is  awesome!!

You're welcome.