works: MIDI-IN: code + schematics

Hi everyone,
Ive been trying to get this to work for a while,but no luck. It seems that the arduino is not recieving any data through RX. Like others, many posts back, I get a LED to flicker when connected to +5v and pin 5 of the optoisolator( when the RX is not connected). I measure about 5.2 v on the pin and a 10th of a volt difference corresponding to keystrokes.
I get nothing coming in on the serial monitor and even the simplest, one led sketches dont work. I am using a microkorg but have also tried a sci prohet 600. I tried changing the baud. I checked for loose connections, cold soldered joint, and my diecimila is fine other wise.
Any suggestions? It seems a few others had this problem but there were no real solutions posted. Id really appreciate any help. Thanks