We find the complete phase diagram of a generalised XY model that includes half-vortices. The model possesses superfluid, pair-superfluid and disordered phases, separated by Kosterlitz-Thouless (KT) transitions for both the half-vortices and ordinary vortices, as well as an Ising-type transition. There also occurs an unusual deconfining phase transition, where the disordered to superfluid transition is of Ising rather than KT type. We show by analytical arguments and extensive numerical simulations that there is a point in the phase diagram where the KT transition line meets the deconfining Ising phase transition. We find that the latter extends into the disordered phase not as a phase transition, but rather solely as a deconfinement transition. It is best understood in the dual height model, where on one side of the transition height steps are bound into pairs while on the other they are unbound. We also extend the phase diagram of the dual model, finding both O(2) loop model and antiferromagnetic Ising transitions.