DreamStones is Tile-based, and will most likely stay that way.
(I'm not sure about the ArtWork, though - whether it will be isometric or made of square tiles, what size, etc.)
From the games point of view, a player or an object is only on one tile, not in between tiles.
A few tile-based games of interest (especially for the rules in ChallengeRooms) :
The tile-based gameplay is the biggest difference between DreamStones and a MUSH (see Comparison with MUSH worlds).