diff --git a/examples/README.txt b/examples/README.txt
index 78d5ca764b..20e64b47b0 100644
--- a/examples/README.txt
+++ b/examples/README.txt
@@ -332,48 +332,73 @@ examples/uip
 examples/usbserial
 ^^^^^^^^^^^^^^^^^^
 
-  This is another implementation of "Hello, World" but this one uses
-  a USB serial driver.  Configuration options can be used to simply
-  the test. These options include:
+  TARGET CONFIGURATION:
 
-  CONFIG_EXAMPLES_USBSERIAL_INONLY
-     Only verify IN (device-to-host) data transfers.  Default: both
-  CONFIG_EXAMPLES_USBSERIAL_OUTONLY
-     Only verify OUT (host-to-device) data transfers.  Default: both
-  CONFIG_EXAMPLES_USBSERIAL_ONLYSMALL
-     Send only small, single packet messages.  Default: Send large and small.
-  CONFIG_EXAMPLES_USBSERIAL_ONLYBIG
-     Send only large, multi-packet messages.  Default: Send large and small.
+    This is another implementation of "Hello, World" but this one uses
+    a USB serial driver.  Configuration options can be used to simply
+    the test. These options include:
 
-  In additional to the target device-side example, there is also
-  a host-side application in this directory.  It can be compiled under
-  Linux or Cygwin as follows:
+    CONFIG_EXAMPLES_USBSERIAL_INONLY
+       Only verify IN (device-to-host) data transfers.  Default: both
+    CONFIG_EXAMPLES_USBSERIAL_OUTONLY
+       Only verify OUT (host-to-device) data transfers.  Default: both
+    CONFIG_EXAMPLES_USBSERIAL_ONLYSMALL
+       Send only small, single packet messages.  Default: Send large and small.
+    CONFIG_EXAMPLES_USBSERIAL_ONLYBIG
+       Send only large, multi-packet messages.  Default: Send large and small.
 
-    cd examples/usbserial
-    make -f Makefile.host TOPDIR=../../.
+    If CONFIG_USBDEV_TRACE is enabled (or CONFIG_DEBUG and CONFIG_DEBUG_USB), then
+    the example code will also manage the USB trace output.  The amount of trace output
+    can be controlled using:
 
-  This will generate a small program called 'host'.  Usage:
+    CONFIG_EXAMPLES_USBSERIAL_TRACEINIT
+      Show initialization events
+    CONFIG_EXAMPLES_USBSERIAL_TRACECLASS
+      Show class driver events
+    CONFIG_EXAMPLES_USBSERIAL_TRACETRANSFERS
+      Show data transfer events
+    CONFIG_EXAMPLES_USBSERIAL_TRACECONTROLLER
+      Show controller events
+    CONFIG_EXAMPLES_USBSERIAL_TRACEINTERRUPTS
+      Show interrupt-related events.
 
-  1. Build the examples/usbserial target program and start the target.
+    Error results are always shown in the trace output
 
-  2. Wait a bit, then do enter:
+  HOST-SIDE TEST PROGRAM
 
-     dmesg
+    In additional to the target device-side example, there is also a
+    host-side application in this directory.  This host side application
+    must be executed on a Linux host in order to perform the USBSERIAL
+    test.  The host application can be compiled under Linux (or Cygwin?)
+    as follows:
 
-     At the end of the dmesg output, you should see the serial
-     device was successfully idenfied and assigned to a tty device,
-     probably /dev/ttyUSB0.
+      cd examples/usbserial
+      make -f Makefile.host TOPDIR=../../.
 
-  3. Then start the host application:
+  RUNNING THE TEST
 
-       ./host [<tty-dev>]
+    This will generate a small program called 'host'.  Usage:
 
-     Where:
+    1. Build the examples/usbserial target program and start the target.
 
-       <tty-dev> is the USB TTY device to use.  The default is /dev/ttyUSB0.
+    2. Wait a bit, then do enter:
 
-  The host and target will exchange are variety of very small and very large
-  serial messages.
+       dmesg
+
+       At the end of the dmesg output, you should see the serial
+       device was successfully idenfied and assigned to a tty device,
+       probably /dev/ttyUSB0.
+
+    3. Then start the host application:
+
+         ./host [<tty-dev>]
+
+       Where:
+
+         <tty-dev> is the USB TTY device to use.  The default is /dev/ttyUSB0.
+
+    The host and target will exchange are variety of very small and very large
+    serial messages.
 
 examples/usbstorage
 ^^^^^^^^^^^^^^^^^^^
diff --git a/examples/usbserial/host.c b/examples/usbserial/host.c
index 90cb85ed7b..235d1f4021 100644
--- a/examples/usbserial/host.c
+++ b/examples/usbserial/host.c
@@ -159,7 +159,7 @@ static void show_usage(const char *progname, int exitcode)
 int main(int argc, char **argv, char **envp)
 {
   struct termios tty;
-#ifndef CONFIG_EXAMPLES_USBSERIAL_INONLY
+#ifndef CONFIG_EXAMPLES_USBSERIAL_OUTONLY
   ssize_t nbytes;
 #endif
 #ifdef COUNTER_NEEDED