Ah, I was looking int the project properties, not the view. I set this on, but it doesnt work as the sprites arent placed in the editor, they are spawned as the player runs along. Each sprite tile can be anywhere from 64,64 to 320,320 (Multiples of 64). I have it set to move the top tile when they are overlapping eachother, but this still only works to an extent as it will leave little gaps between the tiles that are spawned.
I edited the link to use the capx, I had the wrong link up before