By the time it finishes the PAUSE 1000, the USART buffer has probably overflowed.
Check the OERR bit (RCSTA.1).
If it's set, you have to toggle the CREN bit (RCSTA.4) to reset the USART.
Since you are using HSERIN, you can set ....
DEFINE HSER_CLROERR 1
But that way, your program will never know when the overflows happen.
Or, you could just wait to set-up/enable the USART until after the PAUSE.
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