On the serial connection I dont get a read out unless I multiply the baud by 8.
This implies that the clock frequency is being divided by 8 which is the default condition. So yes, this could be a fuse issue (see below).
I've read that the 328p and 328p-au are different.
They have a different number of pins, 32 vs 28 and the extra four pins are not just tacked on at the end. In other words the functions of each of the pins 1-28 on the 32 pin chip do not match the functions of the corresponding pins on the 28 pin chip. For example, the crystal goes to pins 9 and 10 on the 328p and to pins 7 and 8 on the 328p-au.
Using the fuse calc at AVR® Fuse Calculator – The Engbedded Blog I am setting up with the following settings, ...
Have you looked at the default settings here: --> http://www.codingwithcody.com/2011/04/arduino-default-fuse-settings/ ?
Don