OK I think I figured out how to do it so I figure I would post the answer (even if I did start this thread...)I'm not an expert coder so there probably is a much more elegant/faster way to do this but at least it works. Hopefully this helps someone.
# ---------------------------------------------------------------------------
# Dist2LandCover_v1.py
# Created on: 2012-05-09
# By Amelie Davis
# Description:
# ---------------------------------------------------------------------------
############ IMPORTANT ########################
# Assumes that your land cover layer is projected AND cell size is 30 meters
# Uses NLCD 2006 classification codes
# output file must be a shapefile and the output name must have .shp at the end of it.
##############################################
# Set the necessary product code
# import arcinfo
# Import arcpy module
import arcpy
from arcpy import env
# Check out any necessary licenses
arcpy.CheckOutExtension("spatial")
###################### Script arguments
Input_Fishnet_with_unique_ID2_field = arcpy.GetParameterAsText(0)
#Input_Fishnet_with_unique_ID2_field = "D:\\DATA\\USA\\MigBirdFishnet\\NLCDfishnet20mi_p.shp" # provide a default value if unspecified
Input_Land_Cover__NLCD_2006_ = arcpy.GetParameterAsText(1)
#Input_Land_Cover__NLCD_2006_ = "D:\\DATA\\NLCD\\nlcd2006_cook" # provide a default value if unspecified
Output_Workspace = arcpy.GetParameterAsText(2)
#Output_Workspace = "D:\\DATA\\DELETE" # provide a default value if unspecified
# Set environment settings
env.workspace = Output_Workspace
env.mask = Input_Land_Cover__NLCD_2006_
Zone_value_you_want_to_calc_dist_from = arcpy.GetParameterAsText(3)
#Zone_value_you_want_to_calc_dist_from = "11" # provide a default value if unspecified
LC_codes = arcpy.GetParameterAsText(4)
Final_Output_shp = Output_Workspace + "\\" + arcpy.GetParameterAsText(5)
####################
# Process: Reclassify #1
#set to 1 LC code from which you want to calculate distance. Example: water = "11"
text_in = Zone_value_you_want_to_calc_dist_from+" "+Zone_value_you_want_to_calc_dist_from+" 1"
fromClassremapList = text_in.split()
fromClassremapList = [int(k) for k in fromClassremapList]
remap = arcpy.sa.RemapRange([fromClassremapList])
nlcd_wat = arcpy.sa.Reclassify(Input_Land_Cover__NLCD_2006_, "VALUE", remap, "NODATA")
#remap = arcpy.sa.RemapRange([[11,11,1],[12,95,"NODATA"]])
#nlcd_wat = arcpy.sa.Reclassify(Input_Land_Cover__NLCD_2006_, "VALUE", remap, "DATA")
out_rc1 = Output_Workspace + "\\out1"
nlcd_wat.save(out_rc1)
# Process: Euclidean Distance
out_euc = arcpy.sa.EucDistance(nlcd_wat, "", "30", "")
out_euc_s = Output_Workspace + "\\euc_dist_1"
out_euc.save(out_euc_s)
arcpy.AddMessage("finished calculating euclidian distance")
# Process: Int
out_Int = arcpy.sa.Int(out_euc)
out_Int_s = Output_Workspace + "\\water_dist"
out_Int.save(out_Int_s)
# Process: Copy initial fishnet shapefile so that original is not modified
arcpy.Copy_management(Input_Fishnet_with_unique_ID2_field, Final_Output_shp, "")
# Process: Reclassify (2)
#set to 1 LC code for which you want to know the average distance from LC in Process: Reclassify #1
#remap2 = arcpy.sa.RemapRange([[11,94,0],[95,95,1]]) #old
#remap2 = arcpy.sa.RemapRange([[95,95,1]]) #works
LC_CODE = LC_codes.split()
for i in LC_CODE:
text_in2 = i+" "+i+" 1"
forClassremapList = text_in2.split()
forClassremapList = [int(k) for k in forClassremapList]
remap2 = arcpy.sa.RemapRange([forClassremapList])
nlcd_ag = arcpy.sa.Reclassify(Input_Land_Cover__NLCD_2006_, "VALUE", remap2, "NODATA")
out_rc2 = Output_Workspace + "\\out2"
nlcd_ag.save(out_rc2)
arcpy.AddMessage("finished reclassifying")
# Process: Times
# save output permanently?
out_times = arcpy.sa.Times(out_Int, nlcd_ag)
out_temp2 = Output_Workspace + "\\temp_ag"
out_times.save(out_temp2)
field_name = "XX_" + str(i)
# Process: Add field to initial fishnet shapefile
arcpy.AddField_management(Final_Output_shp, field_name, "SHORT", 6, "", "","refcode", "NULLABLE")
# Process: Calculate Field
arcpy.CalculateField_management(Final_Output_shp, field_name, "!FID!","PYTHON_9.3","")
arcpy.AddMessage("Starting zonal statistics")
# Process: Zonal Statistics as Table
outTable = Output_Workspace + "\\dist_per_cell.dbf"
outZSaT = arcpy.sa.ZonalStatisticsAsTable(Final_Output_shp, field_name, out_times, outTable, "DATA", "ALL")
arcpy.AddMessage("finished calculating mean +/- std distance per cell")
# Process: Join Field
fieldList = ["MEAN", "STD", "MIN"]
arcpy.JoinField_management(Final_Output_shp, field_name, outTable, field_name,fieldList)
arcpy.AddMessage("finished with land cover" + str(i))
# Delete intermediary files
##arcpy.Delete_management(out_rc1, "")
##arcpy.Delete_management(out_Int_s, "")
##arcpy.Delete_management(out_rc2, "")
##arcpy.Delete_management(out_euc_s, "")
