Well, I tried your code, and got a quite strange result. I got four characters repeating infinitely on one only line of the Serial: æ, a square with 0080 written inside, another one with 0098, and the one with 0080 again. I'm using arduino 1.0.1, but I was normally using arduino 0023 until now. What does it all mean?
PS: Actually, as I'm working on a team project, I was supposed to finish with this today. It's just an amateur project, and there's no problem if it's not finished, but it would be nice if I could finish it. What I mean is that I would need the solution as soon as possible, because for now on I've more or less three hours to present the results of my work...