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I switched over to cycles and added an image texture and then this worked in cycles but upon returning from this back to blender render. I found that this made my screen do this whole orange thing too. It may be related to this that caused you this issue especially if you tried experimenting around in cycles and then switched back and so on.

The same method that fixes this issue on other engines fixes it for me so I'm currently using a script to convert the tilesets and it's probably for the better anyways since it seems to be an issue outside of blender even if it isn't an issue internally for everyone. I've also had to start unchecking transparent after setting the material to shadeless which I do not recall having to do before (I also recall the first time [before this shadeless issue], I tested this that it just worked without seams as well not sure if the two issues are related or if im just having a false memory though.

No, you can just add as an image texture and it seems to work.

I get seams when using this and rendering in blender. Is this to be expected and how do I render without showing the seams?