Dwayne,
I would try Melanie's trick for a quick sanity check. But aren't you setting the PortA.1 to 0 in various places.
PORTA = $08
PORTA = 0
I do not know if by doing this you reset the port to be an output but you may want to look at the TRISA register (MPLAB or Listing) after you manipulate it as above.
Just a thought.
Edit:
One more thing, since you're not using interrupts but are sampling the input (if it turns out to be an input) you could have a case where the sampling is synchronized to zeros on your serial input. I explain myself, if both TX and RX are at the same rate there is a chance this may happen. If the TX is running much faster than the RX there is a better chance this will happen (actually you have less of a chance of properly sampling on the clock edge, but that's a different story).
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