Thank you Troy!
I've checked my code and yes, I have set up everything correctly. here's the code segment:
PLLFBD=38; // M=40
CLKDIVbits.PLLPOST=0; // N1=2
CLKDIVbits.PLLPRE=0; // N2=2
RCONbits.SWDTEN=0; // Disable Watch Dog Timer
//while(OSCCONbits.LOCK!=1) {}; // Wait for PLL to lock
U1MODEbits.STSEL = 0; // 1-stop bit
U1MODEbits.PDSEL = 0; // No Parity, 8-data bits
U1MODEbits.ABAUD = 0; // Autobaud Disabled
U1MODEbits.BRGH = 0; // Low Speed mode
U1BRG = BRGVAL; // BAUD Rate Setting for 19200
U1STAbits.UTXISEL1 = 0;
U1MODEbits.UARTEN = 1; // Enable UART
U1STAbits.UTXEN = 1; // Enable UART Tx
U1MODEbits.RTSMD = 1; // sets to Simplex no Flow Control
This is actually a function that is called upon when InitUart1(); is called in the code. So it sets those bits for transmission. Last week I had the problem in which it wouldn't type anything to the LCD and that was because I was missing that line in the code and now that I added it it does what it does now.
I have not messed with the LCD so it is at it's default setting. However somehow i managed to send the code that deletes the startup screen. I'm referring to the following code sent:
putcUART1(254);
putcUART1(64);
OutStr("testing");
now I don't know how it happened but now every time I turn on the LCD the usual Matrix Orbital logo is gone and was replaced by this weird characters..the whole screen is covered with them. I guess the code did went thguh somehow..though it didn't print out "testing" at all..and some reason I got these weird "s" in black boxes all over the screen.
I read through the manual of resetting the manual default by putting that jumper on the back. I wrote the code to set it to set default baud rate, brightness, etc and save it. It didn't do it. Though the baud rate and brightness is fine, the thing now is that I have those weird characters as my startup screen and I have not been able to replace it again...

???...I'm really at a loss here =(
I'm going to check the output of the TTL to RS232 chip..i'm expecting some voltage ranges from -8 V to 8 V and jumping around like that..i'll post updates.
Much thanks for help you are giving me Troy, I really hope we can resolve this =(