Meh, I was too busy to get that worked into it and too lazy to test it, but here is what I got done so far. It includes left and right movement images, the corrected diagonal to non-diagonal delay, and redoing the facing variable such that the built-in direction variable is used instead. Still needs the corner cutting. I put a rock in the file because I was going to use that for testing the corner cutting and picking the object up and throwing it, but I haven't gotten around to it. Anywhere, it's attached.
I think that the first stable release of the engine should have two enemies, an NPC who can be talked to and can move, and at least two Link objects which define their abilities based on how they can move (Link's actions can all be categorized based on the ability to change direction or not). This relies on a parent object system - includes using items likes a sword and shield (I have the shield and sword ripped just not fully usable).
The movement code again might also need to be changed such that movement in general is just movement and not directional changing; the good thing is that my movement code allows this easily - albeit necessary redundancy as non-directional changing doesn't use the code and directional changing has the same check twice. Then again, there might be an easier way to do this; it's easy to do though because the switch statement that checks the added value of the key presses does the directional checking.
This might mean the movement code will be rewritten a bit. Looking forward the actions of dashing with the sword and moving while on fire should be figured out too as those wouldn't work fully under the current movement system. Furthermore, an additional movement system for "bump back" will need to be devised for when Link is hit or when an enemy is hit.
As for working in the GM Lite/Pro thing, that could be implemented in the draw event primarily.
But yeah, attachment (the fps is 30 just because I got tired of setting it when it ran all the time):