THanks for the tutorial, this was very helpful. Funny story, I did this tutorial and thought, "Maybe 8-directional movement would be better." So I tried to code it simply but it would not work. So I went on stencyl to download someone elses 8-directional code, and it was so complex and I stared at it, dumbfounded, thinking to myself, "How is adding diagonal directions in a game so confusing?"
Sorry, my bad. But it is in tutorial 3 (just double-checked and it's indeed there :P).