Uno with Max232 - scramble echo and TX


I am a newbie at this.. so please bear with me :). I got my Arduino Uno and some parts to complete the following project in the tutorial section:

My ultimate goal is to implement a Modbus slave via RS232... I carefully followed the steps in the tutorial but when I reset the arduino what I get on my terminal window is garble as in instead of "Hi" I get "#&". Same with the echo for every character I tried. I made sure that my Terminal software (CoolTerm on Mac OS X) is set to 9600-8-N as instructed. Can someone give some ideas into how to trouble shoot this?