I've been working on a new tutorial here and there and just thought I should post the part of my tutorial that talks about AngleCollide. This function confused me personally for quite a while, and others as well. So here's a quote from my tutorial that should help you guys out. I also fixed up the wiki a bit for this function as some of the information was wrong.
So take a look at "if(!AngleCollide("this",5,5, 204, false, width / 2, height / 2))". Imagine yourself in the center of a circle (width / 2 and height / 2 is where you start). The first 5 is the distance, so that means you can take five steps. The second 5 is the amount of different directions you can go. If there's some object with a mask value of 204 or lower you can not go any further. Pretend you can fly so your not afraid to go over holes (this is what the false is for) so you pass right over it. So if there's nothing solid in your way it will return true, otherwise false. Get it now?