Hello all, I finally got it working. I fixed it by changing the settings for the SHIFTOUT and SHIFTIN commands. Here is my source:

<code>
DEFINE OSC 20
DEFINE HSER_RCSTA 90h
DEFINE HSER_TXSTA 24h
DEFINE HSER_SPBRG 21 ' 57600 Bauds
DEFINE HSER_CLOERR 1
DEFINE SHIFT_PAUSEUS 1000

INCLUDE "modedefs.bas"

Hserout ["ACTIVE",13]

RST var portd.0
SCLK var portd.1
CS var portd.2
DIN var portd.3 'data from PIC to Gyro
DOUT var portd.4 'data from gyro to PIC

temp1 var word
index var word

high RST

pause 1000

main:
low CS
Shiftout DOUT, SCLK, 5, [$04\8,$00\8]
high cs
pause 10
low CS
SHIFTIN DIN, SCLK, 6, [temp1\16]
high cs

HSEROUT ["Temp1: 0x",dec temp1,13]
pause 100
goto main
</code>