I heard the phrase said on a t.v program recently and i can't work out exactly what it means. It might be something like "i'm fine". But confirmation would help.
If you click here, that will link you to a web-page which offers several explanations. The commonest is a radio code meaning "Loud and clear"...ie strength five for volume and strength five for clarity. It can also mean 'I'm fine', as you suggest.
I'm sure Quizmonster is right, but I heard it was from Flight simulations, where your position is laid out on a 10x10 grid. As such, 5 by 5 would mean bang in the middle, or spot on. And yes, Faith (from Buffy the Vampire Slayer & Angel) says it a lot.
Cell phones have 5 bars. In CB and ham radios, there are five LEDs to show signal strength. So, 5x5 means that the signal is 5 out of a possible 5, or max strength and clarity.