http://indreams-studios.com/g_dragon/tiles.zip

Few modifications to my original file-
-Better texture system. Now any signs of tiling should be harder to notice. Also, specular maps and normal maps are quasi-automatically generated. If you want sharper/ higher contrast highlights and bumpiness, then go to the colour ramps in the texture node window (top rightish) And play with the position of the makers on the colour ramp. If you want to change the texture too, then there's a texture node in the same window. Everything else should work perfectly if you don't change the base mesh.
- Finding the specularity slider should be easier to find. Feel free to turn it to 0 or whatever works.
- The mesh now has a displacement map. In other words, the mesh is also bumpy. You can change it in the mesh edit menu.
- The scene supports "linear workflow". In other words, when the scene renders, the scene will be really dark then it'll lighten up at the last moment. That is normal.
- If you change the camera angle, then do this.
    1- Make sure the mesh is selected and clear the scale (alt+s)
    2- Pull out a scientific calculator. Plug in this formula- (1/sin(cameraangle))*meshscale
        - If you didn't scale the mesh, then ignore the *meshscale
        - If you want the camera to use the typical pixel isometric camera angle, then you'll need to clear the rotation on the camera (alt+r) rotate the camera 90 degrees on the x axis (r x 90) then pull out the scientific calculator and plug in atan(0.5) and go back to blender and rotate the camera again without clearing the rotation (r x - then the number). After that, scale the mesh's y axis with this formula (1/sin(90-atan(0.5)))*meshscale.
    3- Scale the y axis with the calculator's output (s y then the number)

Hopefully that all makes sense and works for you.

Alright, quickly mocked up how they could have done it.



If you use Blender, here's the blend file.
http://indreams-studios.com/g_dragon/tiles.blend

If you want to make it pixelly at render time, you can just turn off the osa. For the real time view, you have to pull down the user interface (just go to the border between the 3d window and the top bar and pull it down), go to System and OpenGL, and turn off mipmapping. I don't know if the interpol will do anything, even if you turn on opengl rendering in the game option.

Thanks Delgneith for the present. It's pretty awesome.
Darien, sorry this isn't pixel art. Turns out my pixel art skills are rather crappy. I was going to do something using polygons and such, but I ran out of time. And vector art is fun!