I've had those exact same problems importing graphics into TLP. It has something to do with the color depth of the imported image; for some ungodly reason, TLP will try to match maybe 2-3 colors out of a 4-color palette and turn the image into a mess. I don't remember exactly how I've fixed it; it can be done, but it's a @#$% to hassle with.

This is one of the myriad reasons why I use Tile Molester. Create a new file, set the bit depth to twice that of the ROM file (i.e. if you're editing a 2BPP NES or GB game, edit the new file in 4BPP), then import the image into the new file. The extra color depth not only guarantees all four colors will be represented, but also gives you leeway to fix the colors to match the intended palette using the color replace tool.

TLP imports the colors based on the order of the palette data in the bitmap, not the actual colors. I usually solve this by copying the exported image to a new file, editing it, and then copying the edited image back into the original file and saving it (in Photoshop) and it works every time. I really don't like Tile Molester because it gets all these weird errors all the time and.. it's Java.

I have 0.16, I dowloaded it off this site.. is this not the latest version? The errors it gives me are ones like some settings file not being in the right place.. and I have put it several places. I don't get it any more.. but shouldn't it do that upon installation?