First you check if the player has pressed the move button, then check the tile you want to move to weather you can go there or not, then you increment the tile X/Y position and THEN you add or subtract how many pixels the character is to an "OFFSET".
You use that offset later when you draw the character. When you draw the character you basicly start with the tile X and Y. Then you add the "offset" wich then as you move you subtract from wich makes the character look like its moving twards the tile. Anyways im really happy how this works. Thank you Joe Farell for writing such a great tutorial series here on gamedev.net without your source code I dont think I would have figured out how this works unless I asked the gamedev.net community.
Without further delay, heres a screen of the current state of the engine. I still need to add sprites for N S E W movment, but it looks very good so far :D.