The LCDOUT defines don't alter the SERIN/SEROUT... it's two different things.
If you want to use the internal USART RCSTA/TXSTA/SPBRG you have to use HSEROUT/HSERIN AND the dedicated I/O.
If you want to use your favourite I/O and don't want to mess your time in calcs, use SEROUT/SEROUT2. these allow to change the baudrate on the fly without too much effort, fat free and allow to use almost every PIC i/o.
And if you want to configure your Serial LCD... i don't know how as you never said wich one you're using
But for sure LCD_LINES is not the solution.
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