Strange problem with Serin/Serout on 16F628

[Bruce]

Interesting problem. You seem to have everything configured OK for A/D & comparators off
with ADCON1 = 7 & CMCON = 7. Have you verified the PIC is even running by blinking an LED?

Edit: hold the phone. Your code indicates you're using A2 for TX and A3 for RX.

The only difference is that I am using A.3 and A.4 on the 877

If you're using A4 for TX, this pin is an open drain output. I.E. it can't go high!