Can I use the ftdi232 with a mega2560 wiring it up just like its on a uno? I noticed the baud rate changes to 115200, but is this just for the micro itself, or does it effect the ftdi chip? Anyone ever done this?
The FTDI chip doesn't know about the baud rate.
The FTDI chip doesn't know about the baud rate.
???Really???
Anyhow, there is no reason that you can not hook a FTDI up to a 2560. The precursor Mega 1280 had just that interface.
The pinouts are identical. The Atmega2560 just has 128k more Flash than the Atemga1280. Plug your FTDI Rx->Tx0(Mega) and Tx->Rx0(Mega). Power FTDI thru the Vin and Gnd. The Reset/DTR maybe the variable. DTR/CTS should work through the reset pin, if not, a manual reset may be needed (hold the reset button until the FTDI Tx flashes twice).
???Really???
I must have fallen asleep at the keyboard 
What I meant was "The FTDI chip doesn't know about the baud rate set for the processor."
Basically, the FTDI chip creates a com port that allows the PC to talk to the processor at the processor's speed.
Silly me, i hooked up tx->tx and rx->rx. Thats probably why im having trouble. I'll try to switch them today. It kept timing out when i tried to upload. Guess that would be why. Thanks guys!