An isometric view gives the chance to compute the render target pixel coordinates very easily, and apply a mask directly in the first pass.

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example:
Code:
#include <acknex.h>
#include <default.c>

ENTITY* player_ent;

BMAP*  mm_overlay_butt = "#256x256x32";	//normally "mm_overlay_art.TGA"
BMAP*  bmpMinimap = "#256x256x32";

MATERIAL *mtlMinimap =
{
	skin1 = mm_overlay_butt;
	
	effect = "
		const float4x4 matWorldViewProj;
		float4 vecColor, vecSunDir, vecAmbient;
		
		texture mtlSkin1;
		sampler MaskSampler = sampler_state { Texture = <mtlSkin1>; };
		
		void VS (
			in float4 inPos: POSITION,
			in float3 inNormal : NORMAL,
			out float4 outPos: POSITION,
			out float2 outScreen: TEXCOORD0,
			out float3 outNormal: TEXCOORD1 )
			{
				outPos = mul( inPos, matWorldViewProj );
				outScreen = ( outPos.xy * 0.5f ) - 0.5f;
				outNormal = inNormal;
			}
		
		void PS (
			in float2 inScreen: TEXCOORD0,
			in float3 inNormal: TEXCOORD1,
			out float4 Color0 : COLOR0 )
			{
				float fDiffuse = saturate ( dot ( -vecSunDir.xyz, inNormal ) ) + vecAmbient.w;
				float Mask = tex2D ( MaskSampler, inScreen ).r;
				Color0.rgb = vecColor.rgb * fDiffuse;
				Color0.a = Mask;
			}
		
		technique tech
		{
			pass p0
			{
				VertexShader = compile vs_2_0 VS();
				PixelShader  = compile ps_2_0 PS();
			}
		
		}

	";
}

VIEW*  mm_stage1 = { bmap=bmpMinimap; material=mtlMinimap; pan=90; tilt=-90; arc=115; flags=ISOMETRIC;	}
PANEL* mini_map =	{ bmap=bmpMinimap; }

void mm_overlay_butt_startup()		// FABRICATE an SAMPLE overlay-artwork for DEMO ONLY
{	wait(1);		var x,y, xx,yy, tmp, fmt=bmap_lock(mm_overlay_butt,0);
	var opaque = pixel_for_vec(vector(255,255,255), 100, fmt);
	var border = pixel_for_vec(vector(128,128,128),   100, fmt);
	var clear  = pixel_for_vec(vector(0,0,0),   100, fmt);
	var center = mm_overlay_butt.width/2;
	for(x=0; x<mm_overlay_butt.width; x++)		for(y=0; y<mm_overlay_butt.height; y++)
	{	if	(sqrt(pow(x-center,2)+pow(y-center,2))>center)
		{	pixel_to_bmap(mm_overlay_butt, x,y, clear);						}
		else if	(sqrt(pow(x-center,2)+pow(y-center,2))>(center-6))
		{	pixel_to_bmap(mm_overlay_butt, x,y, border);						}
		else { 	pixel_to_bmap(mm_overlay_butt, x,y, opaque); }
	}
	bmap_unlock(mm_overlay_butt);
}

//
// START minimap render processes
//
//
void main()		// nothing in MAIN is important, it is just to create a DEMO environment.
{
	video_mode = 7;		wait(1);				level_load(NULL);		wait(1);		sun_light=25;
	vec_set(camera.x, vector(-100,-500,500));	vec_set(camera.pan, vector(75,-45,0));
	draw_textmode("Times",0,32,100);
	//--------------------------------------------------------------------------------------
	//
	you = ent_create(CUBE_MDL, vector(000,000,-100), NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(51,51,2));
	you = ent_create(CUBE_MDL, vector(400,000,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(1,51,10));
	you = ent_create(CUBE_MDL, vector(000,400,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(51,1,10));
	you = ent_create(CUBE_MDL, vector(-400,000,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(1,51,10));
	you = ent_create(CUBE_MDL, vector(000,-400,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(51,1,10));
	you = ent_create(CUBE_MDL, vector(175, 175,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(27,1,10));
	you = ent_create(CUBE_MDL, vector(-175,-175,0), NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(27,1,10));
	you = ent_create(CUBE_MDL, vector(175,-175,0), 	NULL);	set(you, LIGHT);	
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(1,27,10));
	you = ent_create(CUBE_MDL, vector(-175,175,0),	NULL);	set(you, LIGHT);
		vec_fill(you.blue, 128);		vec_set(you.scale_x, vector(1,27,10));
	//
	// Create Player Entity
	player_ent = ent_create(SPHERE_MDL, nullvector, NULL);	set(player_ent, LIGHT);
		vec_set(player_ent.blue, vector(0,128,0));	vec_fill(player_ent.scale_x, 2);
	//
	// Create Other Entities
	ENTITY* blob[4];
	blob[0] = ent_create(SPHERE_MDL, vector(250,250,0), NULL);	set(blob[0], LIGHT);
	blob[1] = ent_create(SPHERE_MDL, vector(-250,250,0), NULL);	set(blob[1], LIGHT);
	blob[2] = ent_create(SPHERE_MDL, vector(-250,-250,0), NULL);set(blob[2], LIGHT);
	blob[3] = ent_create(SPHERE_MDL, vector(250,-250,0), NULL);	set(blob[3], LIGHT);
	//
	//--------------------------------------------------------------------------------------
	//
	
	
	
	camera.ambient = -100;
	
	wait(1);		// //PAUSE to allow renderchain to initialise in correct order (it APPEARS)
	set(mm_stage1, SHOW);
	set(mini_map, SHOW);

	
	
	
	while(1)
	{
		//move entity about
		player_ent.x += (key_d-key_a)*time_step*15;	player_ent.x=clamp(player_ent.x,-375,375);
		player_ent.y += (key_w-key_s)*time_step*15;	player_ent.y=clamp(player_ent.y,-375,375);
		//
		//move blobs about randomly
		int i;	for(i=0; i<4; i++)	
		{	vec_set(blob[i].blue, vector(0,0,128));	vec_fill(blob[i].scale_x, 2.5+random(1));
			blob[i].x += (random(10)-5)*time_step*5;
			if((abs(blob[i].x)-250)>50)	blob[i].x = sign(blob[i].x)*300;
			if((abs(blob[i].x)-250)<-50)	blob[i].x = sign(blob[i].x)*200;
			blob[i].y += (random(10)-5)*time_step*5;	
			if((abs(blob[i].y)-250)>50)	blob[i].y = sign(blob[i].y)*300;
			if((abs(blob[i].y)-250)<-50)	blob[i].y = sign(blob[i].y)*200;						}
		//
		
		
		mini_map.pos_x = screen_size.x - mini_map.size_x;
		//
		// move stage1(view) around to it follows the player
		vec_set(mm_stage1.x, player_ent.x);		mm_stage1.z = 1000;
		
		
		wait(1);
	}
}