You need to remove the two event actions you have in the "is in touch"
In lab 4 they were moved to the bottom. (you can see you have them twice now)
<img src="https://dl.dropboxusercontent.com/u/2560922/mobiledev/forum/deleteThese2actions.png" border="0" />
The reason why yours will not change face direction is because as your code looks now you are setting the position of the player before your check the distance. So the distance will always be 0.
Thats why the Set position and angle was but down at the end.