Faisal said your code is working. Then there might be some problems in your hardware. Check the following,
Short the wires coming from the pin 2 and 3 of DB9, type something on the hyperterminal and the same should be displayed.
Short pin no. 25 and 26 while, serially connected to the system. Type something on the hyperterminal and you should get the same displayed.
Check whether your crystal is 12mhz itself.