It seems regular sprite collision doesn't work sometimes with physics objects. Is there a way to turn on physics on a sprite without having it act like a physics object (be physically transparent but still register a physics collision?) or is there a way to get sprite collision to work perfectly on physics enabled sprites?

use kinematic mode, SetSpritePhysicsOn( iSpriteIndex, 3 ), your sprite dont be affected by other physics objects but others will react to any collision with him.

It seems SetSpritePhysicsIsSensor will detect collisions but not affect objects movement.

...Also it turns out that the sprite collision was working fine too... it was my program logic that was wrong.