serial strangeness

#include <p18cxxx.h>
#include <pwm.h>
#include <usart.h>
#include <delays.h>

#pragma config OSC = HSPLL
#pragma config FCMEN = OFF
#pragma config IESO = OFF
#pragma config WDT = OFF
#pragma config MCLRE = ON
#pragma config PBADEN = OFF
#pragma config CCP2MX = PORTC
#pragma config LVP = OFF
#pragma config XINST = OFF


volatile unsigned char distance;

void rx_handler (void);

#pragma code rx_interrupt = 0x08
void rx_int(void){
  _asm goto rx_handler _endasm
}

#pragma code

#pragma interrupt rx_handler
void rx_handler(void){
  distance = ReadUSART();
  LATDbits.LATD3 ^= 1; // CHANGE LED
 PIR1bits.RCIF = 0;
}

void main(){
  ADCON0 = 0;
  ADCON1 = 0x0F;
  TRISA = 0;
  TRISB = 0;
  TRISC = 0;
  TRISD = 0;
  TRISE = 0;

  LATA = 0;
  LATB = 0;
  LATC = 0;
  LATD = 0;
  LATE = 0;

  //PWM ON
  T2CON = 0;
  OpenPWM1(249);
  OpenPWM2(249);
  SetDCPWM1(1023);
  SetDCPWM2(1023);

  TRISCbits.TRISC7 = 1;
  RCSTAbits.SPEN = 1;

  // baud rate  = FOSC/(64*(x+1)) // for brgh_low
  // 9600 bps, 40MHz, x=64
  OpenUSART(USART_TX_INT_OFF & 
            USART_RX_INT_ON & 
            USART_ASYNCH_MODE & 
            USART_EIGHT_BIT & 
            USART_CONT_RX & 
            USART_BRGH_LOW, 
  64);

  LATDbits.LATD3 = 1; // TURN LED ON
  RCONbits.IPEN = 1;
  IPR1bits.RCIP = 1;
  INTCONbits.GIEH = 1;
  while(1); // do nothing
}

#include <p18cxxx.h>
#include <delays.h>

#pragma config OSC = HSPLL
#pragma config FCMEN = OFF
#pragma config IESO = OFF
#pragma config WDT = OFF
#pragma config MCLRE = ON
#pragma config PBADEN = OFF
#pragma config CCP2MX = PORTC
#pragma config LVP = OFF
#pragma config XINST = OFF

volatile unsigned char distance;

void low_isr(void);
void high_isr(void);

#pragma code low_vector=0x18
void interrupt_at_low_vector(void){
  _asm GOTO low_isr _endasm
}
#pragma code
#pragma interruptlow low_isr
void low_isr(void){
  // LOW INTERRUPT CODE
}
#pragma code high_vector=0x08
void interrupt_at_high_vector(void){
  _asm GOTO high_isr _endasm
}
#pragma code
#pragma interrupt high_isr
void high_isr(void){
 //HIGH INTERRUPT CODE
  distance = RCREG;
  LATDbits.LATD3 ^= 1;
  PIR1bits.RCIF = 0;
}
#pragma code

void main(){
  ADCON0 = 0;
  ADCON1 = 0x0F;
  TRISA = 0;
  TRISB = 0;
  TRISC = 0x80;
  TRISD = 0;
  TRISE = 0;

  LATA = 0;
  LATB = 0;
  LATC = 0;
  LATD = 0;
  LATE = 0;

  //USART
  TRISCbits.TRISC7 = 1;

  TXSTA = 0x00; //transmit disabled
  RCSTA = 0x90; //SPEN + CREN
  BAUDCON = 0x02; //0x22 RXDTP, WUE
  SPBRGH = 0;
  SPBRG = 64;

  ///////////////////////////////////////////////////////
  //BAUDCONbits.RXDTP = 0;
  ///////////////////////////////////////////////////////

  PIE1bits.TXIE = 0; // no interrupt for sending
  PIE1bits.RCIE = 1; // interrupt on receive
  RCONbits.IPEN = 1;
  IPR1bits.RCIP = 1;
  INTCONbits.GIEH = 1;
  
  LATDbits.LATD2 = 1;
  LATDbits.LATD3 = 1;
  while(1){
    LATDbits.LATD2 ^= 1;
    Delay1KTCYx(200);
  }
}