Hello irob,
The only thing that comes to mind is that you have the TXD output at the MCU connected to a receiver output at the ICL3232, giving an I/O conflict.
Note that it is likely that your device will require a DCE connection, since the PC provides a DTE connection, and I assume that you don't want to use a special null modem cable. For DCE, the TXD line from the PC would need to connect, via a RS232 receiver, to the RXD pin of the MCU. Similarly, the TXD pin of the MCU would connect to a RS232 driver, to provide the RXD line back to the PC.
Regards,
Mac