RFID problem

I used the code that was from the arduino playground:

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;
digitalWrite(2, HIGH); // deactivate the RFID reader for a moment so it will not flood
delay(1500); // wait for a bit
digitalWrite(2, LOW); // Activate the RFID reader
}
}
}

When I open the serial monitor and scan the tags, only jibberish words come out. "TAG code is" does not even come out.

I think something is wrong with the bps...I have tried the softwareSerial and it worked when i set the serial.begin(9600) and SoftwareSerial RFID = SoftwareSerial(rxPin,txPin); RFID.begin(2400);

Use the drop down menu in the bottom of the serial monitor window to change it to 2400 baud.

I used the code that was from the arduino playground

For what RFID reader?

Is the PC or the RFID reader connected to the serial port on the Arduino? You can't have both there.

Yeah I am using the aruino fio which needs a FTDI cable that is connected to the RXI. Because the RFiD reader also needs to be connnected to the RX for the SOUT pin, I have both rfid reader and the arduino connected to the serial port. Should I use the softwareserial?

Yes

Should I use the softwareserial?

No. SoftwareSerial is obsolete. Use NewSoftSerial, instead.

Do you know if there is any site that provides the Newsoftwareserial code for the parallax rfid reader? I know where to download the library but I don't know the code for the rfid reader...

the Newsoftwareserial code for the parallax rfid reader?

No you misunderstand, Newsoftwareserial is code to allow you to read from a pretend serial port, you just substitute calls to that in your RFID code for the calls to the real serial port.