AtTiny85 SoftwareSerial and TinyDebugSerial Not working properly

Erni:

I have a pin on AtTiny connected to the Rx pin on arduino UNO

And the ground pins ?

with capacitor over reset and gnd

No it should be either

  1. A jumper wire between reset and ground (and a small resistorr on the tx/rx lines for safety)
    or
  2. remove the processor from your UNO board

Got it working. Thanks! Can't believe it was just a wire instead of a capacitor.