Except for the DEC modifier, good to go.

Code:
start:
        'read keypress variable 
        @ READKEYPAD _myvar 
        LOOKUP  myvar,[0,"123A456B789C*0#D"],myvar
        'lcdout $fe, 1        'clear lcd screen
           'pause 2000
        lcdout <strike>dec</strike> myvar      'display keypress variable myvar
   
   'transmit section
        SerOut PORTC.6,T2400,["the key pressed is",myvar] 'SerOut PinNumber2,T2400,DataRec
        pause 1000
   'transmit section ends
        
    'receive section 
         'SerIn PORTC.7,T2400,DataRX       
         'LCDOUT datarx          'displays data received from serin datarx
    'receive section ends
        lcdout $fe,1          'clear lcd screen
        
goto start