Thanks, Mister e, for the link. The article by Melanie on how to set configuration fuses answered my error question and also a lot of others I have had about the subject. I edited my .incl file per her instructions to eliminate overwrite by the @__config statement and it now compiles without errors.
Now that it finally runs, I have another question for Bruce. The Non-interrupt code runs fine, but I am not seening any pulse counts show up in TMR0 value when I write it during execute and then use READ in PICKkit2 to read the memory address....it is continuously zero. I thought maybe it was because my simulation mode for pulses wasn't working so I put a voltmeter on the RA2 pin while running the program and depressing the switch button to simulate pulses. What I saw was that RA2 was at 1.8 volts when the switch was open and of course it went to ground when I depress it. Isn't the 1.8 volt transition enough to trigger the TMR0 to count the pulses?