I'd say your technique of debugging using the ports isn't really working here. Personally I'd suggest that you hookup a lcd module so you can print out meaningful values rather than just rely on a count on some port pins. Usually I'd use the serial port, but thats tied up! You could also write some bit-bashed serial routines to output some information rather than use a lcd. When weird shit happens you need as much information as possible and a few leds is marginally better than nothing in this instance. Being able to 'see' the data you're receiving would help much.

I admire your persistance and back Jan for you to retract your statements to Andy. Using the term 'retard' and spelling it wrong made me larf! It didn't reflect well on you! Remember you're not talking to your mates at school, this is an international forum. So what you might think is 'smart' translates to us as 'loser'. Anyway, relax and enjoy the ride...