Thanks SKIMASK, I believe you were referring to the RETURN in this section:
dout:
low dgood
pause 100
For i=0 TO 7
IF mydata.0[i]=0 Then
encoded.0[i*2]=0
encoded.0[i*2+1]=1
Else
encoded.0[i*2]=1
encoded.0[i*2+1]=0
EndIF
Next i
Return ' I took this out
serout serpin,N2400,[$55,$55,$55,$55,$55,synch,encoded]
if keyin = nokey then x2
goto findkey

Ive recompiled it, still doesn't work, I check the serial out pin with Oscope and it shows a datastream, Out of curiosity, I have a whole sleeve of the processors so I replaced both but still no luck