Problem with Displaying Image

I'm displaying a bunch of images for a custom inventory system for a map. I followed PitzerMike's tutorial and am still having problems. The images just seem to want to stretch themselves, no matter what I do.

Things I've tried:

1. The method in the tutorial
2. Using 2 pixels on the outside, instead of one
3. Using the method described by the post at the bottem of the tutorial
4. Changing my image converter to a different program
5. Using .tga (works but larger file-size)

Here you can see my problem


I have attached the .blp and .tga images used, so if anyone wants to check to see if I got anything wrong.

Thanks,
Ammorth