Try
set object collision on
And if that doesn't work, make a collision box around both objects:
size=object size y(1)/2
make object collision box 1,0-size,0-size,0-size,size,size,size,0
size=object size y(2)/2
make object collision box 2,0-size,0-size,0-size,size,size,size,0
Also, it could be that you aren't looking close enough at that variable. Object hit() will only return a 1 once, then it will flip back to 0 until you pull the objects apart and put them back together. Then it will return a 1 again, and flip back to 0 etc...
If you want the function to always return a 1 while they are together, use
object collision()
TheComet
