What is happening!??!
I am using 2.28 and getting REALLY confused.
If I press N and adjust the LocY value of a point, it moves it on what the XYZ compass widget says is the Z axis. Am I retarted or something? Please explain.
Here is a link to the .blend file in case it helps.
You will have to clear the rotation of your mesh with alt-r; but you may not be happy with the results. give it a try but someone else may be able to give you better advice.
-Brian
hmmm. I wonder how that happened. I have to agree with you, I am not pleased with the results. 
you can apply rotation with ctrl-a
that re-aligns the objects local axis with the global axis
After you use alt-r, then go into edit mode select all vertices and rotate them to the way you’d like them to face. Once you come out of edit mode your local and world will agree.
PamTango
NateTG is right. This is another example where the apply size/rot function is usefull.
N-Button in EditMode refer to the local axis
N-Button in ObjectMode refer to the global axis
If global an local axis are not parallel altering coordinates in edit mode will cause confusion.
Alt+R will only clear the rotation of the object including mesh data.
Ctrl+A will clear the rotation (and size) without changing the mesh data.
Meaning the local axis will become parallel to the global ones but the mesh itself stays in place.
After applying Ctrl+A, changing vertex coordinates in EditMode should work in the expected way.
Thanks guys! This forum is awesome.