Thanks for the reply.

1. I have used GVC modem 33.6 KBps
2.register settings have been verified with an independent PC to PC program and found tobe workign OK.

4.Synchronisatioon is managed by implementing a FIFO buffer in IRAM and looking at busy signal from printer

5. Yes. The reason why printer prints junk has been understood.
7.What is not understood is why the same noise is not observed when I run a PC program on both ends - ie., PC<->modem<->modem<->PC type connection is done.
regards
k.ganeshan