Smackre: It's all about setting tool planes and Cplanes. Its important that the X always points in the correct (same) direction. Otherwise it will think your trying to do a 5x positioning move.
If you really want to learn about all the different ways to do 4th axis indexing & contouring, visit my web site below. I have a training CD for V9 & X that explains them all in detail.
Mike Mattera
Tips For Manufacturing Training CD's, DVD's for Mastercam, SolidWorks, Inventor, G-Code Training & More
http://www.tipsforcadcam.com