Arduino + Parallax RFID Reader (Need Help!)

Ok, so i have it hooked up, and i have a sample program, but i need it to to take the tag and identify it. so really this boils down to: how can i read the code and then use that?

BTW: the tag id is 12000C8985

// RFID reader for Arduino 
// Wiring version by BARRAGAN <http://people.interaction-ivrea.it/h.barragan> 
// Modified for Arudino by djmatic


int  val = 0; 
char code[10]; 
int bytesread = 0; 

void setup() { 

Serial.begin(2400); // RFID reader SOUT pin connected to Serial RX pin at 2400bps 
pinMode(2,OUTPUT);   // Set digital pin 2 as OUTPUT to connect it to the RFID /ENABLE pin 
digitalWrite(2, LOW);                  // Activate the RFID reader
}  


 void loop() { 

  if(Serial.available() > 0) {          // if data available from reader 
    if((val = Serial.read()) == 10) {   // check for header 
      bytesread = 0; 
      while(bytesread<10) {              // read 10 digit code 
        if( Serial.available() > 0) { 
          val = Serial.read(); 
          if((val == 10)||(val == 13)) { // if header or stop bytes before the 10 digit reading 
            break;                       // stop reading 
          } 
          code[bytesread] = val;         // add the digit           
          bytesread++;                   // ready to read next digit  
        } 
      } 
      if(bytesread == 10) {              // if 10 digit read is complete 
        Serial.print("TAG code is: ");   // possibly a good TAG 
        Serial.println(code);            // print the TAG code 
      } 
      bytesread = 0; 
           delay(500);                       // wait for a second 
    } 
  } 
} 

// extra stuff
// digitalWrite(2, HIGH);             // deactivate RFID reader

Does this code work? That is, does "TAG code is: " and the tag code get printed?

If so, what is it you need help with?