Have found the problem, wrote to the manufacturer and they replied with this:
The ER modules are pre-set to 19200 baud. If you cannot talk to them at this speed then you cannot use them. One of the best ways to get around this is to purchase the eval kit for 55 pounds. This has two pcb boards, leads, antennas etc. which enable you to connect the module to a PC that can communicate at 19200 baud. Then you can send the ER command to change the board rate to PIC baud rate you need for example 2400 etc.
So I was thinking about building another board with a 20MHz crystal and try send it the commands to change down to 2400. If I do this - am not really sure of the syntax - it says in the datasheet the comm settings is ER_CMD#U1 so do I send it like this SEROUT pin,baud,["ER_CMD#U1"] ???
Thanks again for all your guys input so far
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