Here's the problem then:
"use hr-1001 without shorting any pins at a baudrate of 1200"
yet you have VirtualWire set up for a different speed:
vw_setup(2000); // Bits per sec
They need to be set to agree.
This line
Serial.begin(1200); // Debugging only
only sets the comms via the USB port to your PC (which uses the serial D0/D1 lines).