Norm,
There are many ways to do it. You can also use the interrupt TMR1 to detect changes in the output frequency due to a pad being touched by a finger. This is explained in AN1101 "Introduction to Capacitive Sensing".
http://ww1.microchip.com/downloads/e...tes/01101a.pdf
I see that you are using AN1286 "Water-Resistant Capacitive Sensing". If you are using your touch sensors in a wet environment, then you might want to consider using inductive sensors. Take a look at the table I attached to this post.
http://www.microchip.com/stellent/id...param=en538303
Robert
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