yes you've understood completely! despite my lack of communication skills. Answering your questions:
Are serial interrupts enabled?
yes
Is serial receive enabled?
yes
Are baud rates set correctly?
yes, as have run a simple transmit programme over on the same circuit shich outputs fine,just the serial interrupt thing I have to get the hand of.

Do you have access to a oscope?
yes and I'll make use of it tomorrow when I put your ideas into practice

Thanks, I'll more than likely be back on later tomorrow with more issues but for the mo, life is rosey!!