Thank you for the reply. I am trying to use the padding and or margins to compensate for the tear effect in unity. I had read some posts that suggested using margins and or padding can help with this.
Reset offsets to zero, and set the tile size back to 32x32. Set padding to 1x1. It looks like you added margins to the tileset, from eyeballing it, looks like you have to add 1 margin on each side, and then a 1x1 offset.
Think of padding as the safe space that goes around the tile.
Margins are the spacing between tiles.
Offset moves the entire grid from the origin.