Sometimes Half The Problem

...is finding the right Google search terms. After horribly breaking the physics by turning it into a self-sufficient engine, independent from the graphics, Dwarves have had little hope of digging, let alone staying afoot of the terrain.

http://games.fourtwo.se/xna/2d_collision_response_xna/

The link above is the style of solution I was performing but perhaps more sensible.