for diagonal movement i think youd have to use the number key pad, its so simple you should be able to make it yourself, just simultaniously alter moveX and moveY
i remember v7 not being that bad on my g4, and really, who uses g3s nowadays? you can get a g4 for 100$ easy off craigslist, my g5 cost 250$ and my intel cost 400$
v7 can be slow but its so innovative, a small map(town size) in v6 can take up 2 to 3 megs and large maps(level size) take up 6+megs so if your game has just three levels then saveing is gonna be very laggy with a source thats 15+megs. v7 maps use hardly any space at all AND eliminates haveing to make the map in a graphic editor. theres still work to be done though, i havent figured out how to add npcs yet
but if your a beginner i highly recommend v6 cause its so easy to use( i mean, isnt the source only 30 lines?), and will help you get familiar with the basics. its so easy its hard NOT to work it in somewhere, like with elements, i through it in sinse its only useing one small map