BTW: you can avoid all of this.
Minecraft textures are 16x16. Keep them this size, as it saves immensely on final file size.
When you save your texture, simply check the "Point Sample" box. It just tells the engine to interpret it in another way, so when it scales it up, it doesn't blur.
Obviously, you need to scale the textures then (to about 4). If you are planning on doing an entire minecraft themed map, its probably worth changing your default settings so that you dont have to resize the texture everytime.
And a shameless plug of a minecraft map I've done. It works out pretty easy in the long run, but you just have to learn some different techniques to standard texture creation. (The shot doesn't actually show the textures as non-blurry, but a large scale, "realistic" minecraft themed map, with around 50 minecraft textures, just showing it can be done)
