It says that it just checks the baselines of the characters for the character collide and for the things overlapping it does a rectangular check so is there a nontransparent pixel based collision code I could use so my characters look like they are touching.
Not to take the credit, but a while back I came up with a pixel perfect collision detection technique, which SSH then developed into his Pixel Perfect Collision Detection module (http://www.adventuregamestudio.co.uk/yabb/index.php?topic=26307). You might want to give that a try.
Thank you for showing me the module its just what I needed.