There are freeware loopback test programs that can test the serial port.
You could also use a null-modem cable (or a regular serial cable with a null-modem adaptor) to connect from the serial port on the current device to another computer's serial port. Then run hyper terminal between the two and when you type in hyper terminal on one computer, it will display on the other. If any issues exist, the data won't come across.