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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.