Doing further research, it looks like I have to use HSEROUT withe the USART pins on the PIC18F2450. I have tested with HSEROUT and I still don't get any serial out.

Can I use other Pins and use SEROUT? if so what do I need to specify in my code? I have a 20mhz clock and need 9600,n,8,1

I disconnected the 232 chip and the result is the same.