Is the Serial Port pin CTS an inverse logic, meaning if you have a logic high input the PC terminal will register a logic low?
Check the Wiki page out, particularly this bit:  

Control signals are logically inverted with respect to what one sees on the data transmission lines. When one of these signals is active, the voltage on the line will be between +3 to +15 volts. The inactive state for these signals is the opposite voltage condition, between −3 and −15 volts. Examples of control lines include request to send (RTS), clear to send (CTS), data terminal ready (DTR), and data set ready (DSR).