Hyperterminal always gies problems.
Put an oscilloscope on the serial output pin to make sure you're getting bits of some sort. Then you can measure the period of the bits to see if you've got the CPU clocking, dividers and baud rate right.
If you don't have one, write a loop that continuously transmits data and then see if you see a change on the serial output pin with a multimeter.
Make sure Hyperterm is set to the right serial port (COM1 or COM2 and not a modem. Click on the "on hook and off hook" telephone buttons. It tends to be fussy with the other modem signals - you might want to pull the unused pins DB9 pins up.
I'd suggest you forget Hyperterm and use Teraterm instead. it is easier to get working with embedded hardware.
http://www.ayera.com/teraterm/