I've been trying to install pyserial for blender, but I can only install it to python32 on my C drive, is there anything i can do to have it install to blender or have blender import from python32
Blender has its own python installation and libraries. You can try to install your packages to blender directly. My dir for example: ...\Blender 2.63\2.63\scripts\modules
Otherwise, you can always hardcode the paths directly in your code with sys.path.append("...")
More info about installing modules available here, read about python setup.py install --home=<dir>