In 4e did they remove the 1 and 1/2 movement rules for moveing diagonaly so that I can say move (with a speed of 5) 5 squares in any direction making a 11x11, or 121, boxs of potential movement options or is it still like the 3.5 rules were a move of 5 or 25ft would give you a circle like shape with a diameter of 11 squares or 55ft provideing 89 movement options.
Yes, 4E removed the approximations in 3E and 3.5E for all forms of measuring distance. In 4E you just count grid squares.
This simplifies movement and distance calculations, and effectively turns all circles into squares in terms of area of effect, range of attacks (and reach) etc.
4e's movement rules are all in squares (representing 5 feet, but no power or feat will ever mention real distance, only distance in squares) and powers, feats, and class features all use number of squares to denote range, and area size of attacks. Rather than being a circle (like in real life/a more simulationist game) 4e's burst and blast attack powers hit an area of the map that is a square.
Distance moved diagonal is exactly the same as distance moved in a straight line.
Its important that diagonal movement is equal to straight line movement because close burst, burst, and blast powers all hit squares in the grid in a X by X square pattern. Thus moving diagonal does not inherently give the PCs or monsters an advantage in escaping any kind of of attack (be it ranged, burst, close burst, or blast)
Close burst powers emanate out from the player's square by 1 concentric square for each size noted. Here's an example of a close burst 1 power: (0 = not targeted, x = player, + = targeted square)
ooooo o+++o o+x+o o+++o ooooo
Blast powers emanate from the player square in one direction and one square of the blast must meet the edge of the player's square. Thus for a blast 3 power: (0 = not targeted, x = player, + = hit square)
00000000 0000+++0 0000+++0 000x+++0 00000000 00000000
Lastly, Burst powers hit a target space and emanate outward. Thus for a burst 1 power: (0 = not targeted, x = player, + = hit square, z = target square)
0000+++0 0000+Z+0 0000+++0 000x0000 00000000 00000000
FYI, if you want better visuals and need any other rules for 4e clarified I would look at this Quick Start Guide.