Ok, I can fringe from any high terrain to a low terrain (in order of precedence), which is awesome right? Yea, unless every transition looks exactly the same. So I thought, well I could make a couple transition tilesets, but it still would work. Especially for water tiles, since they should look like so:
Where G is grass, W, is water, and D is a little dirt in between them, kind of making a ledge or a lip. So, I'm back at square one. I need to figure out some way to do transitions in a tileset.
Using my current method, each terrain requires 32 tiles, and I can fit upto 8 textures into a 512x512 texture (using 32x32 tiles anyway). So that will allow me for 8 different terrains, which should be enough. I guess I'll stick with this method for atleast my first game.