Not baking, no images, no object *BLEND FILE*

I have looked this up and there seems to be no walk around that works.
I tired the plane method with no avail, check the blend out if you can.

I`m trying to bake AO

In the outliner window make the ARMATURE ARMS object renderable (camera icon)

Then select the object, tab into edit mode, create a new texture in the Image Editor window and press the Bake button

The bake gives:

Thank you very much. Something new i have learnt, i will keep this up for people who run into this problem :).

Just one more question, how can i make the ambient even on both arms.

EDIT: One arm needed to be flipped.