Can the Uno handle two serial port functions ?

This set up works when reading keys pressed on the control panel as this data is sent down the serial port and echoed to the PC via the USB port when I am running Windows XP version of hyperterminal but I am unable to send data to this device when I type characters into the hyperterminal window.

Am I missing something or should this be seamless?

Or do I need to add some sort of polling code so that data gets echoed back to the serial device also?

int led = 13;

// the setup routine runs once when you press reset:
void setup() 
{   

  // initialize serial:
  Serial.begin(9600);  
  // initialize the digital pin as an output.
  pinMode(led, OUTPUT); 

  pinMode (0, INPUT);  // rxd
  pinMode (1, OUTPUT);  // txd
}

// the loop routine runs over and over again forever:
void loop() 
{
 
  while (Serial.available() > 0) 
  {
    char inChar = (char)Serial.read(); 
    Serial.print(inChar);
  }

}