Custom collisions failing

I've tried to make my own simple 8-direction movement but I cant get collisions working.

http://www.mediafire.com/?52emlylng5y

It seems to work here, or is the problem that the player stops short of the obstacle?

It seems to work here, or is the problem that the player stops short of the obstacle?

That's exactly the problem, he usually stops 3 or 4 pixels from the object

Nevermind, I figured it out.

Anything I want colliding has to be on a grid the same size as the player's pixel movement per tick.