Sorry, I wanted to know if there was a way to set the cells as part of that image w/o editing the image, but you cant, so I just have to edit the picture to be just the individual 16x16 tiles.
Well, the plan was to create tile objects and populate the world with them, and each tile would be 16 x 16, the picture is just a tileset, and with some other programs, they are able to use those pictures to create tiles, but alas, there is no such method in greenfoot
Just because no method currently exists to do what you want, that does not mean you cannot write one to do what you want. I mean you can create your tile objects and give them an image that is just bit of the image. Just create images of appropriate size and draw the image above on it at different offsets and assign them to the tile objects.