Ok…just thought, I’d share this. Here are two images. The first one shows how Tiled renders the scene (all the candles, books, flags and ice blocks are on a second layer with a Y offset of -65 and the horizontal bricks across the two columns in the back are on a third layer with a Y offset of -256; the rest - including the higher walls are all on the base layer). Because of how layers are treated individually, the walls don’t hide the objects correctly.

In my game engine I use a z-index to sort things correctly and the result is as below: all perfect. Right now, I just live with the limitations of Tiled and preview the result in my engine. Tiled is still giving me a lot of support.
