Followup. I rewired the rs232 connector by reversing pin 2 and 3, but still did not work. Since I have many years of love/hate relationship with RS232 devices, I knew it was something with my setup.
I tested with a null modem cable I have with COM2 and it worked, so it wasn't the wiring. After dozens of restarts changing values and retesting, I decided to not use USB connection and test with another RS232 cable (Prolific) connected directly to COM1 on control unit. And it finally worked, so the issue had to be the RRC1258 drivers. I uninstalled them (ver 1.13) and reinstalled using ver. 1.17. The ports were reconfigured differently, but that's ok. With new drivers, I tested and it finally worked!
So 2 problems. One was wiring of COM1, and second, a reinstall of drivers. And now I can continue with wiring to my rotator.
73!