I eat 400 cals of Oats and veggies and 500 cals of lean chicken when i wake up, and 600 cals of Oats and 500 cals of lean chicken, around my workouts, 8 hours after my morning meal.

With 2 meals a day and consuming 125 calories of protein in one meal, would this hurt my gains, this way of eating fits into my life great, but if my body is not going to use the protein for muscle building, then i will have to change things around, i have seen a lot of information on this subject, but a lot of it contradicts what the other claims. Has anyone got the knowledge to enlighten me on this?

Check out some of the threads on intermittent fasting. That might give you some good info with regard to waiting a while before you eat. If you're worried about protein digestion you could always help it along by using something like SyntheSIZE post meal.

I guess the big question is, is it working for you?

This is why i ask, i have read about IF, but as i posted, the information i have researched seems to contradict each other. I just want to have some good advice, which im hoping i could get here.