Alrighty making some progress, but still stuck.
I successfully installed lirc again(reinstall)
I successfully found the USB-UIRT device using dmesg| grep -i usb. I get:
FTDI USB Serial Device converter now attached to ttyUSB0 (dont' know why it doesnt say USB-UIRT connected or something)
changed my hardware config as show in the above post
changed my lircd.conf to the "mceusb.conf" off lirc.sourceforge.net
started the daemon "/etc/init.d/lirc start"
-no errors (yaayaya)
-it hangs(but thats good im told)
press buttons on my Windows MCE remote....and nothing happens
p.s. I swear one time I did a dmesg|grep -i usb, i saw a USB-UIRT??