Solution:

Does 232SPS2 work with Xon/Xoff Yes, however, while doing a test with HyperTerminal and also Hercules software, I had to manually send out an Xon ( hex 11), or Ctrl Q, before the data would go out the serial port. Creating a test file in Notepad and hitting "Print", would not show anythnig coming into the Serial port, untill I sent out a Hex 11 in Hercules, then all the data came out the serial port. And in HyperTerminal, sending a Ctrl Q did the same thing. Then even after shutting down HyperTerminal and restating, it would print right away. So apparently the software is not automatically sending out the Xon. If power is cycled on the 232SPS2, then it does not print, until an Xon is sent ( ctrl Q or hex 11)