AVR simulator problem

i programmed the simulator for reading an input port of atmega 8 and then tensmit it over a distance by using 648 L encoder.. but i cant read the value, tried DDRx , Config, but of no use. if you have, can you post a basic code (or asm) that assigns a port as input. or suggest another compiler? (basic) ?
regards
Magnatro

In order to set a port as input DDRx has to be set to 0, PORTx has to be set to 0, and you read the PINx register. If any bit on PORTx is set to 1 while the corresponding DDRx bit is 0 the internal pullup on that I/O line will be enabled.