I am currently adding Isometric camera support to my D3DFunc dll. here is an example video
http://www.cloggj.f2s.com/Isometric.wmv
You set the camera with the following code
make object cube 1,10
position object 1,0,0,0
position camera 0,10,5,10
point camera 0,0,0,0
d3d_set_ortho_projection 0,20
Setting the orthographic projection to a width of 20 units will mean that a cube 20 units wide would fill the screen regardless how far away the camera is.
You could use this to produce true isometric sprites from an animated object.
Cheers,
Cloggy