Does anyone know how to get these to work in custom tilesets? Every time I try doing it with one of my custom tilesets it looks really ugly.

It's something about the pallette.
If you are using Paint,you can forget about that!

There a couple lines of colors in the palette where you need to add a gradient(I don't remember though, ask Disguise).

Palette entries 176 to 207 (inclusive) should be a smooth gradient.
Use these colours exclusively in an 8-by-8 tile tileable texture.

Toxic stop taking the easy route
SCG > YACG!

Anyways, I was gonna write a whole speech. but that wouldnt help you at all.
http://users.surfanytime.co.uk/disguise/texturehelp.gif

its a 168kb image (1024x1024) with all the help you need, and hopefully it should be pointed out easily aswell. Sorry colour reduction messed it up a bit, thats just to keep the filesize low (the bitmap is 3mb ).

Easy routes are made to be taken.

And remember, people, the second palette screenshot is the best.