The definition for a countable set is: A non-empty set $S$ is countable when its elements can be a arranged in a sequence
Well, no. Or rather: that's a definition in natural language, and those are always slippery. In particular, "sequence" often means "finite sequence," and I suspect that's implicit in how you're thinking about the "definition" you've given.
The precise definition of countability is:
A set $X$ is countable if there is an injection from $X$ to $\mathbb{N}$.
(Some authors also demand that $X$ be infinite.) The connection with the natural-language definition of countability you've given is this: if $f:X\rightarrow\mathbb{N}$ is an injection, we can think of this as arranging $X$ in a (possibly finite) sequence with $n$th term being $f^{-1}$ of the $n$th element of the range of $f$ (in particular, if $f$'s range is all of $\mathbb{N}$, the sequence has $n$th term $f(n)$).
With this definition it should be obvious that there are lots of infinite countable sets - e.g. $\mathbb{N}$ itself (the identity function is an injection from $\mathbb{N}$ to $\mathbb{N}$). More interesting examples include:
The set of even natural numbers: consider the map $x\mapsto {x\over 2}$.
The set of integers: consider the map sending $x\ge 0$ to $2x$ and $x<0$ to $2\vert x\vert+1$. Note that I consider $0$ to be a natural number.
The set of rational numbers: this one's a bit more tricky, but combines an injection of $\mathbb{Q}$ into the set of ordered pairs of natural numbers (exercise: think about putting a fraction into lowest terms ...) and a pairing function.
(At this point, one might conjecture that all "naturally-occurring" infinite sets are countable. Of course, this is false.)