May I suggest that the players be given an option to view the game in either the Chess-like annotations or a translated version of the conventional Xiangqi annotations?
The Chinese traditionally use an annotation system like this: each move has four components - 1) the name of the piece, 2) the starting file, 3) the direction of the move, and 4) the new file number, or if the piece remains in the same file, then the number of points by which the piece moved. If it's an ambiguous situation, then the first two components become 1) whether the piece is in the front, middle, or back relative to other pieces of the same type in the same file, and 2) piece of the name, and 3) and 4) are the same as above.
Since the traditional Chinese style of annotations is written completely in Chinese (or mostly in Chinese, in a version that uses Chinese numbers for Red's moves and Arabic numbers for Black's moves), I of course do not suggest that we actually use Chinese characters, since most here do not read Chinese. I suggest using symbols: a single alphabet for each piece's name, Arabic numbers for all numbers, and + for forward and front, = for sideways and middle, and - for backward and back. I believe the Asian Xiangqi Federation is already using a type of such translated version of the conventional Chinese annotations.
Using the conventional annotations has two benefits: 1) a player can become familiar with it and be able to read all the games that are recorded in the conventional annotations, and 2) the conventional style allows one easily trace the moves backwards.
Fencer, if you are interested in this, I'll do what I can help you understand how the conventional annotations work (assuming you do not know already, but if you are already familiar with it, then I apologize for making such an assumption.)
The game rules on this website explains it correctly, but perhaps it can put more emphasis on the sequence of movement, since that is critical in understanding how the piece can be blocked.
The knight (a.k.a. horse, the more precise meaning of the Chinese word representing the piece) must first move orthogonally (i.e. vertically or horizontally) and then diagonally, in such a way that the destination is always two files or two ranks away from the starting point. The sequence of movement is critical, as stated above: it must first move orthogonally. So think of the horse as making two stops in one move - first to an orthogonal point, then to a diagonal point further away. If the first stop - the orthogonal point - is occupied by a piece of either side, then the horse can go no further in that direction.
I'm sure other posters' explanations have already clarified the matter for you, but I thought I'd give a more detailed explanation for anyone who is still having trouble with this rule.
Just want to make this quick survey about whether Chess players really prefer "Westernized" style Xiangqi board and pieces. If you are Chess player who did not growing up playing Xiangqi, and if you do not read Chinese, please answer the following:
1) Do you prefer a Xiangqi set with a fully checkered, 9x10 board, with stand-up figurine pieces played in the squares rather than on grid points?
2) If you answer no to 1), do you recommend it as a "transition" Xiangqi set for someone new to Xiangqi (but is familiar with Chess) before he switches to the traditional Xiangqi set?
3) Do you prefer using the traditional board and pieces (flat disks, played on grid points), except that the pieces are represented by symbols/pictures rather than Chinese script?
4) If you answer no to 3), do you recommend such a set (traditional board and pieces, except pieces are represented by symbols/pictures and not Chinese script) to someone new to Xiangqi but is familiar with Chess and doesn't read Chinese?