Currently when you scale a sprite it also scales the distort map, or mesh associated with it. That's expected. In fact this allows you to create tiled maps to any scale. The problem is it also scales the z height. So my question is would it be possible to have the option for z heights not to scale with the sprite?
In this example:
http://dl.dropbox.com/u/666516/shump1.exe
The sprite with the z heights is only 64x64 pixels, but is scaled to the layout width of 3000x 3000.
The maximum z height of the unscaled sprite is only 3, but as you can see when it's scaled those z heights go up as well.
Also note the collision detection is affected(somewhat) by the scaled z heights.
edit: also note the ram on this is about 0.3 megs, with no slow down except for the start of it where it gets mapped.