Jokers method is probably too slow for lots of shadows all over the place, unless you are running the game on a pretty fast machine (test it to be sure). Other options are:
(1) go with static 'shadows' that are really just part of the building/tree sprites; or
(2) do your iso engine using 2d-in-3d, so you can use hardware-enabled alpha blending available in 3d to blend the shadows with whatever the shadows happen to fall upon. This looks more realistic, but may be more than you want to deal with.
For an example of #2, check out the 'Alpha Effects' demo in my Extended Blitz 2D library. Here's the link:
http://www.blitzbasic.com/bbs/posts.php?topic=21685