Do you know how to go to the Device Manager to check the default serial port settings? There is a setting in there for hardware handshaking (under the flow control option). If the option is set, and the software is not turning it off, then that could be a problem.
Use the Device Manager (hit "Start", select "Run", type "devmgmt.msc" without quotes in the box then hit Enter or click Ok). In Device Manager file the "Ports" entry in the list then hit the + to expand the list of ports. Highlight the port you are using by left clicking on it, right click it then select "Properties". Click the "Port Setting" tab, the last option is flow control. Try setting that to none. Hit Ok to close the properties then run your program.