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Have you tried running a server-instance in Eclipse? By default, annotated event-handlers are registered on both the Server & Client side, but this code deals with Client-Side only code. You need to add value=Side.CLIENT to the annotation to make sure that this EventHandler is only run on the client. Oh, and you shouldn't acronym your modid. What if someone else makes a mod called "magic lore" etc and decide to shorten their modid as well... It won't look pretty, is all I'll say.

man, you are a hero! I have searched for this for ages

EDIT - That was the issue all along.

EDIT - Figured out the sprite thing. The ResourceLocations had .png when they shouldnt