1. A method for generating textured graphics comprising: identifying with a processor a first border of pixels having a first color around a first image including a first plurality of pixels formed in a first rectangle; identifying with the processor a second border of pixels having a second color around a second image including a second plurality of pixels formed in a second rectangle; generating with the processor a third plurality of texels having the first color; generating with the processor a fourth plurality of texels having the second color; generating with the processor a texture atlas including a two-dimensional arrangement of texels including the first image with the third plurality of texels positioned on at least one side of the first image and the second image with the fourth plurality of texels positioned on at least one side of the second image; and storing with the processor the texture atlas in a memory to enable generation of repeated textures using mip-mapping on an object in a virtual environment using at least one of the first image and the second image as a repeated texture without seam artifacts between repeated textures.