Serin -> Hserout -> Hserin -> LCDOUT

[EarlyBird2]

first two set the rx/tx pins. this pic has two sets. the third is interrupt edge selection... shouldnt affect usart

Yes there are two eusart one on PortB5/7 and one on PortC4/5. A bit more of your code

stowlight var byte
stowlight = 1
TRISC.6 = 1
DOWN var PORTC.1
TRISC.1 = 0
DOWN = 0
EAST var PORTC.2
TRISC.2 = 0
EAST = 0
WEST var PORTC.5
TRISC.5 = 0
WEST = 0
UP var PORTC.0
TRISC.0 = 0
UP = 0
RX var PORTC.6
TRISC.6 = 1

shows you have RX on Portc.6 and that Portc.5 which is the RX pin is the var WEST. Unless I have read the wrong datasheet.