what about if you remove TimeOut label???
what about if you try an pullup instead???

Are you sure voltage swing is correct for serial data. What about if you place an buffer between PIC and SitePlayer

One thing is weird here.... work on PORTA not on PORTC... by a pure guess did you declare

TRISC=255 ;portc as input???

since PORTC is multiplexed with a load of peripheral function, it seems that is safe to do it. As a safe i always declare I/o directions..

what about if you use SERIN or HSERIN without any timeout instead of SERIN2???