Also printed out serial.read and it seems all it reads is -1 for awhile then seems like a continuous loop of numbers without the pot even moving.
val = analogRead(potPin); // read the value from the pot
Serial.print(val); //sends 1 byte
Well, duh! And, you comment is wrong. Very wrong.
int value = Serial.available();
Serial.println(value);
So, a number appears in the serial monitor. What does that number mean?
if(var=='<') //not sure what to put in if statement to run until end
{
started = true;
<snip>
else if(var=='>')
{
ended = true;
<snip>
else if(started)
{
string[index]=var;
Might be worth having the sender actually send a < and a > if you expect the receiver to receive them.