Arduino Mega serial not working

My arduino mega does not output anything on its link to the PC. I tried the Ascii matrix example program, nothing in received on the console window of Arduino software.
What is strange, is that the USB link to the mega is working as I can download and run applications on it.
This Ascii matrix example program works fine with a Arduino duemillanove.
I use the Arduino software version 16.
Is there anything special to do on the Mega for the setting of the serial port 0 ?
Any idea ?
Olivier

I just tried to download a C application compiled with gcc-avr and uploaded with avr-dude. No use of Arduino 0016. This simple application just write on the serial port (USB/serial) some datas. It works like a charm.

So, definitely, it looks arduino0016 has something wrong with Arduino mega and serial port.

Solved my problem:

Turned out I was making a noob mistake. For Serial, you can just connect RX/TX. For Serial1, etc. to work, you need to connect the RX/TX and also connect the device ground to the Mega ground. Not sure why this is, but it makes stuff work.

phew.

old post:
Similar problem.

I cannot use Serial1, Serial2, or Serial3 on my Arduino Mega. I tried compiling using Arduino 0016 and 0017 on Mac 10.6 and Windows XP.

I read that 'downgrading' the compiler works ( http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1250084886 ), but don't know how to do that.

Some advice on using gcc-avr and avrdude as a replacement would be greatly appreciated (how do I use the arduino libraries along with my own code?). Or is there a hidden switch on the Mega to enable the serial ports? Very new to the physical computing stuff.