Try changing the zoom levels for ZoomX and ZoomY for your sprites layer...
ZoomX: 150
ZoomY: 60
something like that. Just play with the numbers.
I tried something freaky yesterday:
Roatate the canvas 45 degrees, with my zoom suggestion.
The new grid movement becomes an isometric grid movement
just rotate your sprite 45 degrees counter-clockwise, and scale in the event sheet to compansate for vertical distortion.