At the risk of talking to myself, yes HSEROUT, can be 'switched' to pin4 (RX) of the Pickit2 - and characters sent via that manner displays fine on the Pickit2 Uart 2 (no garbled data anymore!)

For anyone with a 16f690, who want the settings I'm using to get HSEROUT, here you go...

Code:
@ __CONFIG _FCMEN_OFF & _INTRC_OSC_NOCLKOUT & _WDT_OFF & _MCLRE_OFF & _CP_OFF & _IESO_OFF & _BOR_OFF & _PWRTE_OFF

Include "modedefs.bas"

DEFINE HSER_SPBRG 25
DEFINE HSER_TXSTA 24h
DEFINE HSER_CLROERR 1

DEFINE OSC 4
ANSELH=0
ANSEL=0
CM1CON0 =0
CM2CON0 =0
CM2CON1 =0
adcon1=0

TRISB.7 = 0
rcsta.7=1    'this one switches 16f690's Pin 10 from RB7 (general IO) to USART TX usage- it caught me out!

loop: 
hserout ["Hello ", 13, 10]
pause 100
goto loop
end
Set your Pickit2 UArt tool baud setting to 9600 - away you go!