I understand that my experiment that used a PC to mimic a micro and run a similar test (as if running the software from my micro) is not 100% proof of the working. But I would like to put forth that the PC (Hyperterminal rather) too used the same 3-core cable with out any additional handshake cables and used the same command sequence and the modem Dialed the number. I am pretty sure there was no way the pc communicated with the modem other than the Rx/Tx wires.
so the modem can accept the way the pc transmit and the PC can receive what your board transmits.
how does the fact that the modem can accept a PC transmit "prove" that the modem can accept the way your uC transmit?

also, you never answered:
Well since you "saved" the right crystal did you "save" the MAX232 as well (it is not in yur description). I know that doing without the MAX232 is another thing that "works" if a happenstance succes is considered proof.

Erik