I'm now trying to make Pac-man and I have a sprite sheet for it. But how do I separate this one .png file to make animations? I guess I could use a cutting tool, but this would create a square border around each sprite.
Is the background on the sprite sheet transparent or black?
You can import a sprite sheet via right clicking on the animation window under the edit image (double clicking a sprite to go to edit image) Check this post Sprite Sheets
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Or you could have a look at this manual entry