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I can now see my phone listed in the Terminal window. I followed the instructions [video=youtube;TMcMVDUbpis]http://www.youtube.com/watch_popup?v=TMcMVDUbpis&vq=hd720#t=87"]here[/video] and had better luck.
Once I did this, I was able to run adb. Also, I have no .bashrc, i updated the .bash_profile and ran '. .bash_profile' with bash in login mode 'bash --login'. May have been overkill, but if it helps anyone else out I can now run adb from anywhere and my phone is rooted. I figured better safe than sorry.