Ok I see now. That OE is hard wired. if you take that off serial will not work ether. essentially you will have no communication between the omega and the atmel. so the only solution it to physically cut the traces that feed the SCL and SDA tracer coming off the TXS0108E IC. Ill get the analog inputs back and still be able to program and communicate via serial the atmel.

This seams like a weird oversight on the design of the board. with the conversion IC they way it is analog 4 and 5 are useless. mabey those can be omitted from the riser and replaced by 6 and 7 that are not being used.