Did some digging around and found a file in my /dev folder:
/dev/lp0
Is this equivalent to /dev/parport0?
Maybe setting permissions on this file would help me?

the permissions are 'ls -lh /dev/lp0' :
crw-rw-r-- 1 root lp 6, 0 2008-08-07 07:15 lp0
6 years of using linux and I still have a bit of trouble with permissions!

Ok so as I understand it as long as I am a member of the lp group I should be able to read/write /dev/lp0?
If that is the case then I have no idea why sane fails since I 'should' be able to access parallel port.