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Over the last two decades the Andromeda Galaxy (M31) has been something of a test-bed for methods aimed at obtaining accurate time-domain relative photometry within highly crowded fields. Difference imaging methods, originally pioneered towards M31, have evolved into sophisticated methods, such as the Optimal Image Subtraction (OIS) method of Alard & Lupton (1998), that today are most widely used to survey variable stars, transients and microlensing events in our own Galaxy. We show that modern difference image (DIA) algorithms such as OIS, whilst spectacularly successful towards the Milky Way bulge, may perform badly towards high surface brightness targets such as the M31 bulge. Poor results can occur in the presence of common systematics which add spurious flux contributions to images, such as internal reflections, scattered light or fringing. Using data from the Angstrom Project microlensing survey of the M31 bulge, we show that very good results are usually obtainable by first performing careful photometric alignment prior to using OIS to perform point-spread function (PSF) matching. This separation of background matching and PSF matching, a common feature of earlier M31 photometry techniques, allows us to take full advantage of the powerful PSF matching flexibility offered by OIS towards high surface brightness targets. We find that difference images produced this way have noise distributions close to Gaussian, showing significant improvement upon results achieved using OIS alone. We show that with this correction light-curves of variable stars and transients can be recovered to within ~10 arcseconds of the M31 nucleus. Our method is simple to implement and is quick enough to be incorporated within real-time DIA pipelines. (Abridged), Comment: 12 pages. Accepted for publication in MNRAS. Includes an expanded discussion of DIA testing and results, including additional lightcurve examples