So I ran into a HUGE glitch when I put my Layer 3 Background into Place. (This is my first ever layer 3 background btw) It was successful, well, sort of.. Whenever I play my level I always end up getting this.
Try playing with the Layer 3, Layer 2, and level entrance offsets. Something about Mario's starting position is causing the garbled graphics. More than likely it has something to do with Mario's entrance offset or the BG offset.
Alterantively, if you open up the BG editor (), you'll see a blank space at the bottom:
That space is the glitchy tiles you're seeing, when the background loops from going too high. SMW doesn't originally use that and as a result doesn't initialize those tiles, making them glitch out like that; you can fix it by just editing that space so LM uses a hijack to correct it, which will allow the background to properly loop. Professional frame-by-frame time wizard. YouTube - Twitter - SMW Glitch List - SMW Randomizer