This document summarizes a study on the effect of baud rate variations on virtual channel communication using a PIC microcontroller. The study designed transmitter and receiver systems using PIC16F877A microcontrollers to transmit data at different baud rates (2400, 4800, 9600, 19200 bps) over noiseless and noisy channels. Simulation results showed that the error rate was zero when the transmitter and receiver baud rates matched and increased as the rates mismatched, demonstrating the importance of matching baud rates for accurate communication. Adding white Gaussian noise also increased the error rate but it remained lowest when the baud rates were synchronized.