ASCII characters?

Hi all,
I’m new to the forums so forgive me if I leave out info or post at wrong forums.
I have an M1306 modem and a module based on Maxim/Dallas TINI microprocessor. They are connected through serial port.
I access TINI through telnet. I wrote a Terminal for TINI to communicate with M1306. Through telnet i can see the modem’s responses.
This is what I get after issuing the AT command:
°at°at
°at°at

Furthermore, this is what I get during the boot process:
``°όΑαΑηΗ~fΗαΗ~αxόΑαΑόΑαΑηΗ▲όfΗfαα▲fαΑ♠α♠όαόα♠ΗόΑαΑόΑαΑηΗ▲Ηαf~Η~α▲αΑόΑαΑηΗ

▲όf♠όαα▲αΑόΑαΑηΗ~fΗαΗ~αωα▲αΑόΑαΑηΗ▲Ηαf~Η~xόΑαΑόΑαΑηΗ~fΗαΗ~α▲όΑαΑόΑαΑηΗ▲Ηαf
~Η~αωΗ▲``ωΗαωαx▲ό▲α▲αΑόΑαΑηΗ~fΗαΗ~▲όΑαΑόΑαΑηΗ~fΗαΗ~αωΗα♠ΗαΗα▲αΑόΑαΑηΗ▲Ηαf`~Η~α
ωΗ

Any ideas how I can fix this?
Modem works fine with hyperterminal, and TINI’s Terminal works fine with Q2501 modem.
Thx in advance

Have you looked at this on an oscilloscope?
Looks like a baud rate may be not quite right somewhere?

Are the signal levels all correct?