So, what do you all think? I know that a huge monsters shrink and then move using one space movement before expanding back into unblocked spaces. But my playgroup has an issue with when the monster moves twice. The monster expands it base, then decides to move again, effectively giving it one extra step. Well, what do you all think about that?

Those extra steps are built into the rules on purpose. It's the reason that large monsters have such small amounts of movement points. The designers accounted for this and it's not as broken as your group thinks it is.

^--- This.

The thing that torques me off about it is that the actual mechanic of shrinking and enlarging for large/huge monsters is simply stupid. It is short sighted design, taking the easy way out, to allow for smaller dungeons, etc., which in turn prevents monsters from becoming "stuck".

Quite frankly, this was an interesting aspect to have to take into account when you played D1e as OL, and were dropping crushing blocks, pit traps, etc.

Further, all D1e's rules do is introduce arguments, resulting in a plethora of FAQ movement entries to make up for that poor design.