After some playing and thinking I have decided to ratchet back the complexity a little bit. Not that it was that complex but I want to eliminate encounter and daily powers. Those just aren't need right now. These changes will get this basic game more in-line with my original goal of a BX complexity level game using 4e's mathematical structure.
First I am eliminating AC, Fort, Reflex, and Will for monsters and replacing it with a single Defense score that is equal to level + 14. Spells will now get a proficiency bonus so that their numbers are on par with weapon attacks.
I have used different types of minions over the time I have played 4e and for this iteration I have settled on minions having HP of 5 plus twice level. With the targeting rules below this should result in most attacks that target minion groups dropping one or more minion with a successful hit.
The combat rules will be similar to the 13th Age combat rules regard to positioning. When you target monsters you can target one standard, elite, solo, or minion group. Excess damage from a minion attack gets passed to the next minion. For example, a group of 0 level kobolds would have 5 hp each. It an attack against the group does 12 points of damage then two kobolds would die and the group takes an extra 2 points so that another attack that does 3 points of damage would drop another kobold.
Spell attacks work the same as weapon attacks. With a spell attack you can target a monster or group that is engaged or at range. So for example,if you are a fire wizard and attack an engaged group of minions then you can narrate the effect as a burning hands spell. If you attack a group at range then you can say it is a fireball spell.
Both weapon and spell attacks do 1[W] at first level and an additional [W] for each three levels gained (i.e. 2[W] at 4th, 3[W] at 7th, etc.), and add the PC's level to the damage.
Armor is simplified to light (+3 to AC), medium (+5 to AC) and heavy (+7 to AC). Shields add +2 to AC and Reflex. Neither medium or heavy armor get Dexterity bonuses.
Now onto the classes.
Clerics can wear light or medium armor, and use shields. They are proficient with all one-handed melee or thrown weapons (they can add their god's favored weapon at the DM's discretion). They can make d6 radiant spell attacks.
Fighters can use any armor and shields, and are proficient with any weapons. Monsters need to make a hard saving throw (16+) to disengage from the fighter and cannot opt to take an opportunity attack instead.
Rogues can use light armor and are proficient with all one-handed melee, thrown, and light and medium ranged weapons. Rogues add 2d6 to the damage of any attack in which the target is engaged with one of the rogues's allies or is unaware the of the rogue's presence (this increases to 3d6 at 11th level and 4d6 at 21st level).
Wizards cannot use any armor or shields and are proficient with one-handed melee and thrown weapons. They can make d8 spell attacks and must choose a primary damage type that their spells do. They can change this damage type by reducing the [W] of the attack by 1. They can cast utility spells a number of times a day equal to their Int score plus half-level (remember ability score range from -1 to 4 for PCs). When using a utility spell they can use their Arcana bonus for any skill check.
All PCs can choose any 5 trained skills at 1st level and their are no changes to the non-armor defense bonuses and HP that each class gets.