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UART connection to CMOS UART

I am working with Janus modem ( http://www.janus-rc.com/Documentation/terminus_cf_user_guide.pdf ) and trying to interface the TX and the RX lines.  I am using eUSCI_A1 port which is on P2.5 (TXD) and P2.6 (RXD).  When I step through port initialization as in the following code.

P2SEL1 = BIT0 + BIT1;     /* Debug Port */
P2SEL1 |= BIT6;           /* Modem Port */
P2SEL1 |= BIT5;           /* Modem Port */

When last line is executed, error in console shows up:

MSP430: Can't Single Step Target Program: Could not single step device

At this point you cannot step forward.  What can cause this?  It is the output, why would this happen, do I need a resistor on the line?

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