Here is what my LOGIC TOOL displays. The only change in the code is this substitution of a PWM command.

Code:
ToggleLED1:
     TOGGLE LED1
     PWM PORTD.7,127,1
     TMR1L = PreLoad.LowByte   ' Load the timer with preload value.
     TMR1H = PreLoad.HighByte
@ INT_RETURN
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