Willrandship, Spyro and I are trying to figure out how to program an eZ8 microcontroller. It can be done via the on-chip debugger, but we'd have to set up a UART like this:
Is this possible with realterm or should willranship write his own software in python. (I can do it in C too)

Just browsing thru the 'ReaTerm' Readme: http://sourceforge.net/projects/realterm/files/Realterm/2.0.0.70/ it seems possible, indeed. BTW, any serial communications program should allow that else is not good enough.
BOTOH, why bother to use an external program when you can do it with C or with inline assembly, with just a few code lines? My 2 cents,

1. Ok, probably the good link is this: http://realterm.sourceforge.net/index.html#Command_Line_Parameters . Look at the commandline parameter 'DATA'. It should allow you to specify the data-bits+parity+stop-bits. I guess, that's what you are looking for.
2. I understood you intended to configure the serial i/o port to use from within some program of yours. That's why i've mentionned it would be easier to program the UART-port in code rather than using an 'external program' (RealTerm in this case), provided you have the eZ8 UART docs.
IMO, try to sort it out first with RealTerm and later write a small routine that initializes the UART.  Little endian with 8-bits? I don't get it, sorry. Cheers,