I have this issue here:

http://forum.allaboutcircuits.com/showthread.php?t=66250

I have checked over the datasheet and there seems to be no mention of Timer 1 affecting USART output.

I have been to the Microchip help page but don't see where I submit tickets.

Can a no one like me submit a ticket?

 

Get a myMicrochip login and submit a ticket from your account.

 

Found it! Under My tickets after you login. Didn't see tha before thanks.

 

I truly doubt the silicon is at fault here.

 

I truly doubt the silicon is at fault here.

You might be right but check that thread. It gets stranger.