Hi Hank,
Have you verified that the PIC is running at 4Mhz? Toggle a LED at 1Hz or something will show you that if it's 4Mhz (which if I'm not mistaken is the default for the internal oscialltor) or if it's something else.

Have you tried to simply DEFINE HSER_BAUD 9600 ?

Next, have you tried another baudrate, say 2400baud? The specs says that internal oscilaltor is off by no more than +/-1%. I'm not sure what's tolarable when it comes to RS232 but lowering the generated baudrate will lower any fault introduced by the oscillator - worth a try.

Finally, the internal oscillator can be setup to either output the clocksignal on the OSC/CLKOUT pin on a pin or not - that's the two options.

/Henrik.