I'm just curious (haven't tested it), but how about trying to read RCREG without disabling the USART or CREN first..?

I.E. try temp = RECREG, but leave the USART & CREN enabled, and see what happens.

Maybe something like this;

WHILE RCSTA.2=1
Temp = RCREG
PulsOut PortC.2,10
WEND
GOTO WhereEver

I'm curious about this one myself. If reading RCREG by itself isn't clearing the error, then you'll have a continuous pulse.