Hi,
When I knit with circular needles to do a baby raglan sweater, the stitches come out diagonal. I am using 16" as the directions said to use. Does anyone know what I am doing wrong? how do you avoid this from happening? Thanks in advance. -Teresa

It could be your yarn biasing, or you could be making sts so they're twisted. Check to make sure you're working into the leg closest to the tip of the needle every row.

This might help, too.
http://www.knitty.com/ISSUEfall05/FEATwhyply.html

Are both seams on the front or back coming out on a parallel diagonal instead of slanting toward each other?

Is this a top down raglan sweater? If so this is normal. The stitches are going to slant at the corners where the increases are done. You're going to have four diagonal seams, two in front two in back.