I'm sorry for the almost-6 month bump, but I discovered something related to this subject.
The 8x8 sprite tile, is caused by an OW sprite. In this case, it is the overworld sprite slot B, Ghost x2 (When it comes to SMW). When a "visible sprite" (Blue bird, Lakitu, Ghost, Bowser etc) is in this area:
(Note that I removed the ghost to fix the glitch.)
It will show up the/a glitchy tile at the title screen (depending on OW sprite). Putting the sprite in the top-left corner of the area means it shows up in the top-left corner of the title screen, bottom-right = bottom-right etc. I'm not sure about the Smoke sprite, since it doesn't glitch up for me so for.
I hope this was useful information. >_>