I went back and checked more carefully and it was a typo in my origianal post. I truly am dealing with a Framing error issue. sorry for the confusion.

Since the RX line goes low for about 100ms when the computer is coming out of standby, i thought maybe I would be trying to clear the error while the condition was still holding. So I changed my routine to the following:

IF RCSTA.2=1 'Framing Error
PulsOut Portc.2,10 'send out a pulse for debug purposes
Pause 250 'wait 250ms for condition to clear
'
' now reset the usart
'
RCSTA.7 = 0 'Serial Port Disabled
RCSTA.4 = 0 'Continuous mode disable
RCSTA.7 = 1 'Re-enable serial port
RCSTA.4 = 1 'continuous receive mode
goto RxLoop
endif

Still no luck....only a new character will reset the conditon.

/chris