Both questions are fairly simple to answer, but a bit difficult to discover on your own.
1) I am working on going through the tutorials and I’m right at the start. Every time I click the “Make Pixel-Perfect” button it resizes my sprites to be much smaller then I have scaled them to be. Always the same size but much smaller then I want. Why is this happening?
A sprite is "Pixel Perfect" when it is scaled to the same size that it was originally created at in your image editor. For instance if you create a an image that is 64X64 pixels in photoshop, then import->add to Atlas->create sprite, then scale the sprite to 128X150, your image is being scaled above it's original intended size and could become blurry or pixelated. Hitting "Make Pixel Perfect" will bring it back down to 64X64 where the image is not being stretched in any way, restoring it to a clean non pixelated state. one way of getting around the pixelation is to setup the sprite to be either tiled, or sliced which leads me into your next question:
2) In the tutorial they make a sprite that tiles. I see how to make a sprite, I don’t see tiling sprite as an option in the widget tool. What am I missing?
to setup a sprite so that it can tiled is very simple just click on the created sprite and you should see a selection box under the color selection that says "Sprite Type". Just select tiled and then you can stretch out your sprite as much as you want and the sprite will tile to fill the space.
you follow the same instructions above to set the sprite as sliced, however there is another step you must take to see the full effect of this type of sprite.
First find the atlas prefab in your project (you can do this by selecting the atlas in the widget wizard window, Unity will highlight the corresponding prefab your project). Select the atlas prefab and you will see a UI in the inspector for modifying some of the properties of the atlas.
Select the sprite that you are wanting to make sliced, then adjust the "Border" fields to your liking. You can watch where the borders are in the sprite preview below. You will want to move your borders in to the point where your sprite's outer edge is outside of the border, this mode will cause the part of the sprite that is "inside" of all the borders to be stretched, while keeping the part of the sprite outside of the borders to be pixel perfect
I hope this helps you get off the ground