I have to set the fuses in my programmer. I do set them to what you said.

Anywho. I found the problem. I tried linking the serial output directly into the serial input (NO circuits at all) and it didnt work. Aparently ive blown my USB<>Serial adapter up earlier when my circuit started smoking. Ive tested it in a standard serial port and its working

Sorry to have bothered you but thanx for the output>input idea. Cant believe i didnt think of that before