Hi Groston,
The PIC is obviously sending the data out. You are running with the internal oscillator and it may be that it's not precise enough for the baud rate generator to produce the correct timing. Can you try it with a external crystal instead. (I think it should've worked when you tested at 300baud though, but you'll never know).

Try to get the PIC to send data correctly first. (I know that's what your doing) but perhaps something even more simple, like:
Code:
i var byte
Loop:
  i = i + 1
  HSEROUT [#i, 13]
  Toggle PortB.0
  Pause 1000
  Goto Loop
Let us know.

/Henrik Olsson.