Well, what if you also made it so that in order to jump, Player Flag 1 has to also be set to ON. Then you can add another line like "if Player top detector overlaps the background (i.e. hits his head on the ceiling or whatever) set Player Flag 1 to OFF." You'd have to work gravity in there still, maybe use another flag? I'm new at this too but it may work.
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Ben, that looks fine, but I think its confusing to call that loop "jump" I would name it something like "moveY" or something like that, since its taking care of all actions that could possibly move the player on the y axis.
The reasoning for the fast loops is pixel perfect collision. If you were to move your player at a ridiculous speed, say 60 pixels per frame, without fast loops, you're probably going to pass through backdrops and other actives since you'll skip right over them. But with a fast loop moving the player 1 pixel 60 times per frame, each pixel of movement checks for a collision, and you wont see the next frame until after that fast loop is done-- so you get the same thing, but with accurate collisions. Plus, you dont have to worry about pushing the player out of walls too much since the deepest they can go is 1 pixel.
I remember going through custom platform tutorials when I first was getting into MMF, and I was always so confused as to why people always named their player's y speed value "Gravity." That totally messed with me :I