From memory there were two reasons why an older arduino 0023 sketch fails to compile in arduino 1.0.4

1) 

0023 libraries and .c/.cpp files contained #include "wprogram.h", when later versions contain  #include "arduino.h".

I can tell you how to search and replace all these references if you don't know how.

2)

The Serial.print and serial.println functions changed between versions. In 0023 they print binary and in later versions text. In later arduino versions the "serial.write" function prints binary.

Summary

I don't know the sise of your project so this might not make sense and I might be missing some other changes that I am unaware of. However I am quite confident the issues are these two small points.

There shouldn't be too many of these references in your project and libs. Should be easy to change them and make it work in 1.0.4 but that I know this depends on your experience level.

Send me the project and libs by email if you want me to take a look info [at] visualmicro.com

fyi: The change to the way serial works is the reason the debug doesn't work, seemed like a real pain to support 0023 and earlier.

Tim