I've been reading about this technique but I can't figure out how it works.
I have one simple question: is it feasible to use non-square collision bases?
Anyhoo, I updated the cap with a soft shadow (blurs and fades the higher you go up, looks nice) and tweaked controls to go with modern times XD (up is up, diagonal is diagonal).
Done in .9994
http://octavoarte.cl/iso2_alt.cap
Some countries may not download from this host. Sorry bout that, can't fix it myself. Overzealous protection from spambots in those blocks is responsible.