> From what you are saying this may be impossible, in which case why are RTS/CTS pins listed for this cpu?
The flow control will work if you connect two of these UARTs together. They can flow-control each other in both directions without any problems.
They just can't flow-control a PC or any other PC-like device with common UARTs that don't have hardware flow control. These devices have to use software flow control. Their UARTs have a hardware FIFO that is between 2 and 16 (or up to 64) bytes deep that has to "run out" when they are are asked to stop. Sort of like trying to stop a train.
> The device I ultimately want to connect to is a Bluetooth module which requires hardware handshaking.
It requires hardware flow control on the path from your device to it. It needs to stop you. The MCF UART can do that perfectly.
The MCF UART hardware flow control isn't able to stop PC-like devices sending data to it in time. As long as your software is fast enough to not get overrun (and isn't the bottleneck) you may not need inbound flow control. If you do, then you can do what everybody else has had to do and implement software flow control. Or buy an OS and some drivers that are already written to do that for you.
Read Mark's "TaskerUART.PDF" document. It is an excellent introduction to UARTs in general and flow control in particular. It has a graph showing software "water-mark" based flow control.
Tom