For those of you trying to figure out what I mean, imagine this video clip, but as a 2d game. http://www.youtube.com/watch?v=5HUBPRGjBCQ&feature=relmfu
The plane gets skewed and rotated as it changes its directional angle. So how would I go about implementing this. Is there some sort of skew and rotational effects in corona that would be better than using a highly populated sprite sheet?

Thank you for any help you may provide.

If you need sample code; http://www.anscamobile.com/corona/support/

Otherwise you would want to look at multisheets for the sprites to keep them under 2048px.

Do you know how to play a different animation for walking up, down, left and right? If not there's a tutorial on http://techority.com related to sprites that would help you get started.

Peach :)