Generally you would probably like to set Hyper Terminal to 9600N81. With the SCON value of #50H you have selected an 8 bit UART mode and I don't see any provision in your code for doing even parity like you thought when you were trying to setup Hyper Terminal for 7 bits even parity.

Note that Hyper Terminal can be a major pain in the back side to setup and get working if you are not intimately familiar with the program!! (I use it some and even I have difficulty getting it setup, particularly if it has been several months since the last time I did it.

Have you checked several things..??

1) Are you translating the serial data line Txd from the 8051 to RS232 voltage levels via a driver of some sort. These drivers always invert the logic sense of the 8051 pin to the actual voltage levels needed at the RS232 cable going to the PC.

2) Have you put the RS232 signal line with the signal you monitored into the proper pin on the PC COMM port connector? If your computer has a D9 type connector this signal should go in on pin 2.

3) Have you got Hyper terminal aimed at the correct COMM port. (I.E. COM1:, COM2: etc)?

A good test you can make to verify that you have Hyper Terminal setup and working at all is to take off any cable on the COMM port connector and then jumper the D9 connector pins 2 & 3 together. You should be able to type at Hyper Terminal and see the same characters coming back in to Hyper Terminal via the pin 2 to pin 3 loopback you created with the short. With the loopback in place you can also look with the oscilloscope and check the waveform on the loopback wire. Hold down the A key in Hyper Terminal and you can compare the voltage levels and timing of the signal the PC is generating and see if it is at all like what is coming out of your 8051 hardware. If the two signals match (particularly in timing and logic polarity) and note there may be some differences in the voltage levels. A good RS232 signal will typically swing from levels of at least +/- 3 volts up to levels of +/- 12 volts. If you can see equivalency in the two signals then for sure it seems that you can remove the loopback on the COMM connector and get the signal from the 8051 into to D9 pin 2 to show up on the Hyper Terminal screen.

I hope this helps.
Michael Karas