Thank you very much for that capx Gmoney. It helped a lot.
Your example works fine while mine (which is exactly the same) doesn't. After spending some time comparing the two files I noticed that your Pink sprite is smaller than mine. I tried making it bigger and it stopped working!!
I tried several width/height combinations and it seems to work fine for width less than or equal to 15. Anything bigger it doesn't work. Height doesn't seem to matter.
A sprite with width 20 should easily pass through that path.
What I need to know now is why is this happening with width greater than 15?
Why does making it "solid" matter for path finding?
Why is it not the same for height?
Any thoughts on this are highly appreciated.