OK. Have you used Atmel Studio 6? It is free. You can use the same code, but you have to include the proper headers. Can you compile this code on Atmel Studio 6 and send me the hex file. Compile for 8 MHz.
I compiledd the code in the above link in atmel studio 6 and I got that same C type character, but not 'C'. so the problem is not with the compiler. I think the problem lies in proteus.
I will try a code using mikroC Pro for AVR. Hope it works fine.
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I tried with mikroC also, but got the same C type character. The problem is with proteus.
OK. I tries a simple UART example of sending text and characters to Virtual Terminal using PIC16F877A and it worked in Proteus.
Here is the Screenshot. Have to figure out why AVR uart simulation in proteus is not working.
What is your F_CPU after Prescaling. Are you Prescaling Fosc?
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It is working. See the attached image and download the rs232.rar file.