Actually, it's not working, after making changes to my program, I realized that it isn't working at all. (nothing responded to any changes in the code, what I took to be working, was really just the serial connection powering a led directly, damn my optimism)

Anyways, here is what I have now

Transmitting Code:

CLEAR

DEFINE OSC 20 'Defines oscillator rate
INCLUDE "modedefs.bas"
ADCON1=%11111111 'Sets all ports to digital
TRISD.0=0 'Sets Portd.0 to output
LED VAR BYTE : LED=1 'Declares and defines LED variable
LOOP: 'Start of main loop
SEROUT PORTD.0,T2400,[LED] : PAUSE 50 'Sends LED value serially
'out of portd.0
GOTO LOOP 'Repeat forever
END

Receiving Code:

CLEAR

DEFINE OSC 20 'Defines oscillator
INCLUDE "modedefs.bas"
ADCON1=%11111111 'Sets all ports to digital
TRISB=%00001000 'Sets Portb.4 to input
LED VAR BYTE : LED=0 'Declares and sets LED variable to 0
LOOP: SERIN PORTB.4,T2400,[LED]: PAUSE 50 'Checks portb.4 for serial imput
IF LED=1 THEN 'If LED equals 1, turn LED 2 on and 3
PORTB.1=1 'off, otherwise turn 3 on and two off
PORTB.2=0
ELSE
PORTB.1=0
PORTB.2=2
ENDIF
PAUSE 100 'Pause to see results
GOTO LOOP 'Repeat
END

Thanks, I apologize for my lack of knowledge.
Matt