ok so all in all i think it was my waves bundle. here goes.
1. i uninstalled EVERYTHING (reason / waves bundle)
2. deleted the "rewire" folder in "application support"
3. installed reason 6.5 and then upgraded to 6.5.1
4. opened reason and successfully started a song.
5. closed reason and opened Ableton
6. opened Reason
7. Rewire success!
now to re-install my waves bundle and see if that causes the issue becuase of the "waves rewire" taking over. (going to attempt to NOT install the waves rewire if it will let me have that option)
i will reply with what happens... hope this helps anyone else with this issue