Trouble With Setting Up Maps

You can make tilesets and maps with 1x1 px tiles no problem.

I don’t understand what you mean by “shrink tiles”. This implies you have larger tiles that you want to turn into 1x1 pixels? If you just misconfigured your map and tilesets, you can edit the sizes as described above. If your source tileset image is missized, you’ll need to edit it with an image editor.

Tiled cannot read an image as tiles out of the box, but you can write an import script to do so. Tiled also can’t automatically generate a tileset for you. You could in theory generate such a tileset yourself in your importer, but it would be easier to make one yourself. It would just consist of your various unique coloured pixels.
The documentation for Tiled JavaScript scripting is here, an import script example can be found here. Note that for reading in images, you will need to use the latest snapshot (or the stable 1.5, which should be out next month), as the Image processing API is new. The documentation is here.

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