PIC18F2550 constatly firing interrupt

[poorchava]

Ok, now's the time to ask others. I'm pulling my hair off trying to figure out what's going on.

I'm trying to get pic18f2550 to ionterrupt on receiving character via uart. (simple setup using max232). Here's my code

#include "main.h"
#include "delays.h"
#include "usart.h"

#pragma config FOSC=HSPLL_HS
#pragma config PLLDIV=4
#pragma config CPUDIV=OSC1_PLL2
#pragma config PBADEN=ON


	unsigned char i=0;
	unsigned long j=0;
	unsigned int offtime=60000;
	char dummy=0;
	
#pragma code high_interrupt = 0x08
void high_interrupt (void)
{	
	INTCONbits.GIE=0;INTCONbits.PEIE=0;
	if(PIR1bits.RCIF==1)
	{
		dummy=RCSTA;
		dummy=RCREG;
		PIR1bits.RCIF=0;			
	}	
	INTCONbits.GIE=1;
	INTCONbits.PEIE=1;
}	
#pragma code
void main(void)
{
	TRISCbits.TRISC7=1;
	OpenUSART(USART_TX_INT_OFF|USART_RX_INT_ON|USART_ASYNCH_MODE|USART_EIGHT_BIT|USART_SINGLE_RX|USART_BRGH_HIGH|USART_ADDEN_OFF,311);

	INTCONbits.PEIE=1;
	PIR1bits.RCIF=0;
	PIE1bits.RCIE=1;
	INTCONbits.GIE=1;
        while(1);

Now the problem is that pic is either resetting to the line

_asm goto _startup _endasm

in startup file all the time
or the interrupt if firing all the time without any signal being sent through uart (confirmed with scope - constant high logic level). When i'm reading PIR1 register, the RCIF bit never goes low even when I clear it in interrupt routine

		PIR1bits.RCIF=0;

Pls give me some ideas because I'm about to throw this crap outa window -,-. I've always bee doing interrupts that way and can't understand why it isn't working this time and strange stuff happens