ATMega32 digitalRead and write trouble

CrossRoads:
Try turning on the internal pullup resistors:

for (int i=0; i<31; i++)
pinMode(i,INPUT);
digitalWrite(i, HIGH); // << add this

Move this After the pinModes so the Tx pin is not declared an Input after you turn on the Serial library/function:

Serial.begin(9600);

Thanks for this suggestion this seems to give even more confusing results

//Nothing pressed
1111111-11111111-11111111-1111101


// PD7 set hight
1111111-11111111-11111111-11111101

// PC0 - when plugged into switch but that isn't pressed; essentially: pc0->10k->ground
1111111-11111111-11111110-11111101

// PCO switch active
1111111-11111111-11111111-11111101

// PC1- when plugged into switch but that isn't pressed; essentially: pc0->10k->ground
1111111-11111111-11111111-11111101

// PC1- switch active
1111111-11111111-11111111-11111101