Quote Originally Posted by d_hamen
Yes I had cross connected RX and TX of the phone and pic. I don't think the problem is because of it.

Nokia is working with TTL Logic so it gives high for 3.3v (so 5volt too) and low for 0 volts; So I think max232 is not needed to use here. Because it is using for RS232 which is working with 12Volt.
You still need to invert the logic. The PIC UART is uninverted. You either need to use SerIn/SerOut so you can invert in your firmware or you need to add two inverters (e.g. using the comparators as suggested in the link I gave earlier).

I'm not sure what you mean by "so 5volt too" but 3.3V is inadequate if you are using the PIC at 5V Vdd. Port C has Schmidt Trigger buffers which need 0.8*Vdd for a logic High (0.8*5V=4V). If you use SerIn/SerOut or DebugIn/Debug on pins that have TTL buffers, 3.3V should be OK.