printf() not working , peculiar situation ,

dear friends i have a peculiar situation at hand . i am trying to dump some message to my serial port and see it through my dummy terminal . before that i tried a simple LED toggling , it worked fine .
for that the code i had written is :
#pragma small
#include<AT89X51.h>
#include<stdio.h>

int main()
{
TMOD = 0x20; // The timer set to 8 bit auto reload timer
TH1 = 0xFD; // Higher byte of timer1 set to FD or reload value set to FD
TL1 = 0xFD; // Lower byte of timer1 set to FD
SCON = 0x52; // The serial Controller is configured
TR1=1; // Timer 1 run flag set

while(1)
{
printf("Hello World \n"); // data sent to serial port for displaying



}

return 1 ;
}


so the problem is that on my hyperterminal i dont get anything . but in debug window ,in the serial watch window , i am able to see the output . but after burning the code into the chip and subsequently in the hyperterminal i am not able to .
i am not able to follow where lies the problem . in the c51 primer exact code has been given , but that too does not work .
plz help .ASAP
with regards
Som