You need to use a different syntax for MPASM.

like this:
Code:
Example: To set the PIC for Internal Oscillator allowing use of the OSC pins as I/O...

@ __config _INTRC_OSC_NOCLKOUT

Only one config statement is allowed when using MPASM, so multiple definitions follow-on from each other each connected to it’s previous buddy with an &.

Example: Typical Settings for a 16F628…

@ __config _INTRC_OSC_NOCLKOUT & _WDT_ON & _PWRTE_ON & _MCLRE_OFF & _BODEN_ON & _LVP_OFF & _CP_ALL & _DATA_CP_ON
More (much more) here: http://www.picbasic.co.uk/forum/showthread.php?t=543