Glenn,

I'm not too clear on what you're trying to achieve - what are you trying to time with timer2? All I can see is that you've started timer2 via a serial command.

-Where is timer0 getting interrupted?

Firstly, describe to us what you end task is- there's a fair chance one of us has done this before.

Secondly - give us some specs - how accurate do you want the timing? Miniumum and maximum times, etc

Do some reading on interrupts - I think these may be required. The setting of RI does not interrupt timer0 - your code provides the magic here.