Quote Originally Posted by kessral View Post
In Configuration Bits "Master Clear Enable" is set to "Function as GP3" already, sorry forgot to mention that
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Not sure where you are setting the config? You have some program that is doing it for you?
You will need to modify the *.inc file in the PBP directory to set the configs correctly.
This thread may help explain it. It talks about setting the configs in code space and what to do to make it happen.

http://www.picbasic.co.uk/forum/showthread.php?t=543

And like Alan pointed out. TRIS for this application and pin should be 1.