Aha, this looks promising. AO and projected shadows ahoy! By the way, what does the sliding walk animation mean?
I'm not sure if it affects the 3D model characters. It is for determining how the character should walk...
Slide = the character sort of slides between positions on screen between frames (similar to current walk system) whereas when it is not ticked the character position is updated on each frame, which allows you to create a more natural looking ground to contact walk by offsetting each frame. + as a bonus the no-sliding version does not seem to blur/vibrate like the current system/sliding option. Also quick note, the sliding option would be best used for vehicles or characters on some sort of vehicular transport, such as a motor bike, push bike etc.