I did realize I had the numlock off. When on I can diagonally. However, the mouse (for movement) has never worked for me. I assumed that was the way the game was designed. I really enjoy your game but I do think the "manual" needs "beefing up".
Very odd man. No one had any issue with the mouse. Could you tell me your system specifications?
By the way the latest nightly build has keybinding configuration included.