Here is what we are talking about:
The real credit goes to @R0J0hound. He made the construct 2 files so we could see how to apply this method.
tilemap example https://dl.dropboxusercontent.com/u/5426011/examples20/bitwise_tilemap.capx
sprite example :https://www.scirra.com/forum/viewtopic.php?f=147&t=72925&p=611090&hilit=bitwise#p611090
Another tile-map example: https://www.scirra.com/forum/span-class-posthilit-tilemap-span-auto-tile-help_p721581?#p721581
The reason I am making this tutorial is to illustrate the proper sequence of the tiles needed. The original tutorial by Salt Games uses a really crappy tile-set. It is nearly impossible to tell which tile goes where. So I made this key for everyone:
If you import it into the R0J0hound example files, you need to set the tile dimensions from 20 to 32.
Look at the files included with this tutorial. There is a dots.zip file that has a bunch of other 16 tile, tile-sets for you to learn from.