>To initiate the transmission, I use the following code provided in an M$ article:
>
>*This tells the transmitting side to start sending the file
>THISFORM.Olecontrol1.output = CHR(26)
>

At first glance, you have the RThreshold property set 3. This means that at least 3 characters need to be receieved before the OnComm event fires. Chr(26) (end of file) marker is only one character. Are you sending anything else? if not, set RThreshold to 1.