This is exactly what I want it to do - i.e. let you glide along it. Right now it's not.
Let's say you just hit the wall at angle, and you try to move again, so it looks like this:
Attachment 8042
The clipping algorithm will clip the entire movement, but we actually want sliding action to happen. This is a case of clipped motion between the x and z axes.
Movement along the floor with gravity acting as a downward force is essentially the same case but on the x and y axes.
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and yes downward movement is allowed. The player could be on a ledge and then jump onto the floor below.
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