TTL <-> RS-232 level shifters invert in both directions. It is normally assumed that you will use such a device, so the setup when you use one is call 'TRUE' in PBP lingo.

Inverted mode is necessary when no level shifter/translator is used, like when you connect a PIC directly to the serial port of a PC (but please put a resistor in series with the TxD line of the PC!)

When running in TRUE mode, the output/input of the PIC will be high when in the idle mode, and pulse low when sending/receiving bits. Of course, it will be of opposite polarity on the "far side" of a MAX232.

I see in your example code that your are writing '16416'. This number would indicate that bit 14 is set - meaning that you are sending INVERTED. To send/receive in TRUE mode at 19.2Kbaud, this number should be 32.

If you are "talking" this fast, your PIC should be running faster than 4Mhz.

Also, are you certain that you have your TRIS register set for output on the transmit line, and input on the receive line?