So here's my intuition. Letting $S=\{(x,y)\in\mathbb{R}\times\mathbb{R}:x,y\in\mathbb{Z}\}$, $\bar S=\aleph_0$ because $(x,y)\in\mathbb{Z}\times\mathbb{Z}$, which can be shown to be equivalent to $\mathbb{N}\times\mathbb{N}$, which in turn can be shown to be equivalent to $\mathbb{N}$ and thus is denumerable.
I don't have to prove it, but I think I need to show a little more rigor in my explanation. Also, what would a function that constructs this set (i.e., f onto S) look like? This isn't part of the question I need to answer, just curious because my classmates and I couldn't picture it.
You are correct: $\Bbb Z\times\Bbb Z$ is countably infinite, and your argument is fine. If you want an explicit bijection, start with one from $\Bbb Z$ to $\Bbb N$. Here’s one possibility:
$$f:\Bbb Z\to\Bbb N:n\mapsto\begin{cases} 2n,&\text{if }n\ge 0\\ -2n-1,&\text{if }n<0\;. \end{cases}$$
You can picture the map like this:
$$\begin{array}{r\ccc} \text{In }\Bbb Z:&-4&-3&-2&-1&0&1&2&3&4\\ \text{In }\Bbb N:&7&5&3&1&0&2&4&6&8 \end{array}$$
This map $f$ immediately gives you a bijection $$F:\Bbb Z\times\Bbb Z\to\Bbb N\times\Bbb N:\langle m,n\rangle\mapsto\langle f(m),f(n)\rangle\;.$$
Now compose $F$ with the pairing function, which is a bijection $\pi:\Bbb N\times\Bbb N\to\Bbb N$: $\pi\circ F$ is a bijection from $\Bbb Z\times\Bbb Z$ to $\Bbb N$.