Reading if Pin is High or Low?

[mister_e]

CMCON = 7         ' Disable analog comparator
TRISA = %11110110 ' set PORTA to input
TRISB = %11110000 ' set PORTB to output

UP   VAR PORTB.5
DOWN var PORTB.7
FM   VAR PORTB.2 

POSITION var word    'Position value 
VELOCITY var word    'Average velocity value 
FUNCTION var word    'Function register 
I        var byte    'Loop variable
T9600    con 2 ' <== Baudrate definition in case you don't use
               ' INCLUDE "modedefs.bas" line

MAIN:
    if UP THen
       serout FM, T9600 ,["W01 01 200", CR, LF] 'Write velocity limit value 
       serout FM,T9600,["P01 270000", CR, LF]   'Send MOVETO_ABSOLUTE command
    
       for I = 1 to 100
           pause 25
           serout FM,T9600,["R01 00",CR,LF]
           serout FM,T9600,["R01 14",CR,LF]
           next 
       endif
    
    if DOWN THEN
       serout FM, T9600 ,["W01 01 200", CR, LF] 'Write velocity limit value 
       serout FM,T9600,["P01 0", CR, LF]        'Send MOVETO_ABSOLUTE command
    
       for I = 1 to 100
           pause 25
           serout FM,T9600,["R01 00",CR,LF]
           serout FM,T9600,["R01 14",CR,LF]
           next 
       endif
    
    goto MAIN

The DEFINE HSER_BAUD 9600 'send serial data at 2400 baud have nothing to do with SEROUT, AND i don't see any crystal speed declaration. @9600 bauds with SEROUT, 8MHZ or higher is highely recommended.