Thanks for your reply,
Actually, no I don't exactly know what the problem is, I just uploaded an official example script (robot control -> logo) and then it got stuck there. Well, the robot works fine, it does what it has to do. The problem is -> can't upload anything new...
On clicking reset, the RX/LED flashes 2 times so I guess the bootloader is fine. Perhaps I can even use the DFU on 32u4 (if the arduino people hasn't re-written on it).
On trying to upload another sketch: Well, the TFT screen and the board resets, RX line flashes a bit then the current sketch is still there. I get unsynchronization error from avrdude and/or the IDE. I was using the IDE 1.5 beta version when uploading these sketches. After the final sketch got stuck, I tried other IDE's but no luck.
My fuse settings for the 32u4 are listed on the preferences text as "ff" for low, "d8" for high and "f3" extended, "f2" lock. I checked these settings from "AVR® Fuse Calculator – The Engbedded Blog" and can see that SPI is on.
I came across this site:
http://www.hilltop-cottage.info/blogs/adam/using-atmel-studio-6-ide-with-arduino-uno-and-leonardo/
The arduino IDE also tries forced 1200 baud rate kick to start off the bootloader. However All I see is COMx numbers with arrows and blank "{}"s. So perhaps the 1200 baud kick isn't working???
Thanks for suggesting that usb avr. Do you think it is compatible with atmega32u4? I couldn't find it listed on their pdf.