Using the keyboard for movement it appears the character cannot move diagonally. Movement seems to be via the keyboard arrow keys (no mouse for movement) and with the keyboard you can only go up, down, east and west. What's odd is enemies can attack me diagonally and when I hit the "x" key to explore the character will move diagonally but I can not do so manually. Normally, that not a problem but on my current map the entrance to a new level can only be reached via diagonal movement.

It this a bug, design limitation or am I doing something wrong?

No one complained about this... very odd.

You can move diagonaly with the mouse, with the num pad, or using both arrow keys at the same time (needs a little getting used to).

Also under settings->manual (I think its manual, I am not at home right now) you can see all key bindings. 

Hope this helps :D let me know in any case!

Also have a happy new year!

Gw

Also next release will have user configurable keys so you can change it to what ever you feel comfortable ;)

I have a Alienware Area51 (new version). Basic specs are on attached screen shot.

Wait mouse only fails when trying to move? Menus and similar functions work? How about a right click on any tile, does it bring up the contextual menu? 

Could you try the current nightly build?

Best Regards!