Okay I put together a little example of how to do movement with touch input.
It's got a visual representation of a virtual analogue stick for each touch on screen. There's 3 examples included, each within a different group. You have to disable the other 2 and enable the one you want to see.
The 3 examples are 4 direction movement, 8 direction movement and analogue movement. First 2 use 8 direction with simulated input. Last one just moves the character around manually.
At the moment all of the virtual analogue sticks are contributing to movement, and there are as many of those as touches... You probably only want to use the first one!
I'm talking about this file he had