For the wonky looking graphics:
This is where your painting margins come in. Make sure you have the second layer selected when you change them! You want your painting margins to cover pretty much all of the graphic, leaving a small part to stretch or tile (an empty space if you have one).
You see that I had a lot of empty space on this one to play with, so it was fairly easy. I just covered the image with the bottom margin, which prevents it from getting stretched upwards, and the right margin to prevent it from getting stretched sideways. Note that I have it set to stretch, not tile. This works if you have the blank area to play with, or the graphic you are using can be stretched at a certain point.
If you do have not blank space in the graphic, you are going to need to find a spot that you can tile without it looking terrible, which can sometimes be very tricky. Sometimes that spot is only one pixel in height and you have to set your painting margins to cover everything except that one pixel. It's all a matter of trying out different margin setting and applying it to see how it looks.
Note: if you are tiling an image, check those boxes that say "Tile".
If any of this is unclear, let me know!