Miodhchion:
Anyone know whats going on?
The code looks reasonable and I don't see why it wouldn't work. To give you a clearer indication of what's happening, I suggest you add a Serial.println("Hello world"); in setup() after the call to Serial.begin(). You should see this message on the serial monitor every time the Arduino resets. Among other things, this also proves that the Arduino is running the sketch you think it is. A reset should occur when you open the serial monitor, and of course when you press the reset button.
If you see this output but don't get any response to text entered at the serial monitor, that suggests that the Arduino isn't receiving stuff you type.
Have you double-checked that the correct COM port and serial port speed are selected in the Arduino IDE?
Can you confirm that there is no hardware connected to the Arduino - just the bare board connected to the USB cable?