This seem to work OK!

So I am receiving my 9600,8,E,1 data on Usart RXD Hserin

and

I am driving my lcd display using Usart TXD at 9600,8,N,1 Hserout

Defines as above in my previous post for parity

I just cleared the 9 bit register TXSTA.6 once at start of program after defines and seems to work fine!!

Thanks for all the ideas.