The code looks good to me, I don't see any errors in it [you might want to try setting TR1 *after* you modify PCON, but I don't think that's going to change anything].

Also, try replacing your LoopIn routine with the following, just to make sure you're really getting to LoopIn:

LoopIn:
CPL P3.1
JMP LoopIn

Make sure P3.1 is then being toggled constantly. If it's not being toggled then you know you aren't even making it to the LoopIn section of code and your problem isn't really the serial port--it's something else preventing your program from running.

If P3.1 DOES toggle constantly with the above code, you've got yourself an interestiing serial port problem that I'll have to yield to someone else to suggest alternative potential problems.

Craig Steiner