Basic Stamp 2 SERIN/SEROUT to PBP SERIN2/SEROUT2 issues.

Hello.

I have "memory stick datalogger modules" from parralax, which are using FTDI chip, to create USB host for flash drive reading/writting.
Parallax provided sample BS2 code, and I was able to run it properly, about 10 years ago.
I decided to modify that code for PBP, but there are some issues. The test software does not go after "initializing" stage.
Wiring is all correct, all ports are working, and usb logger module is initializing properly - green led off, red on, which means drive is ready.
LCD shows "synchronizing" which means, module had responded, because, without the module, it does not show "synchronizing".

I tried to check with the scope, and looks like there is no activity on the pins, but when addressed directly, I can make these pins high/low and they work fine.

Initial code which makes me concern looks like this:

SEROUT TX\CTS, Baud, ["E", CR]

Which I replaced with

BAUD CON 84
CR CON 13

SEROUT2 TX\CTS, Baud, ["E", CR]

However, it does not work. I'm attaching both my complete code and parallax's source code. Was something lost during conversion?

bs2pbp - my code
dataloggers.txt - parallax code

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