@qMopey Unfortunately if the Y value has a greater influence than the X value, it doesn't look right if you go in front of walls, since the x-axis SHOULD be the deciding factor in this case. Like this:
(X is greater but since Y trumps X, it doesn't work.)
Fo the bottom right corner sorting, I have switched over to using that after Fox's post. Thanks though. As to the 3d depth testing, to be honest the reason I'm not using 3d is because I have almost no knowledge on 3d graphics. I'm using Game maker and although it has 3d functions I'm not sure if they would be able to do 3d and keep the pixel perfect perspective. I want the current pseudo-3d look I have, not a true 3d look.
@DrDerekDoctors
I hadn't thought of that but I can see that is definitely correct... Fortunately I'm planning on having 2d sprites for all of the actors in the game that won't have a fake 3d look so I think I can get away with it. Thanks for your comment.