0.5V is a suspicious number - I suspect that it's actually five, but some combination of how the 'scope is set or how you're interpreting it is leading you to believe that it's 0.5. Maybe put a meter on it instead to verify.
Try to avoid shorting 5V to GND, unless you want to let the magic smoke out
Yes I see data flowing from the rs232
I am not using the laser right now, i am testing with the terminal emulation program, it should be the same right? since serial data is flowing through the MAX232 to the arduino
Well it proves that your MAX232 is working anyway. You may find though that it will be necessary to swap RX and TX on the laser, if there is a different cable involved.
I measured the Arduino TX and RX output signals and they are fine.
I measured the MAX232 output pins and I am getting a Voltage of almost 10V in pin2 (DB9-Male). The signal is binary, but does not correspond to ASCII. Am I correct to assume this is because the MAX232 already made the conversion of the signal?
Do you have a manual for the laser? I know you posted a link earlier, but IIRC, it was the manual for a similar model, not the actual one you're using. Is it possible that the serial comms are subtly different on yours?
All the MAX232 does is change TTL voltage levels to those required for true RS232. It's not translating the data transmitted, so it will still be the same ASCII characters on the wire.
Also, as anticipated, that null modem cable you're using reverses RX/TX for you, hence the problems encountered when you did so too - they cancelled out.