Thanks Mackrackit

Ok I have altered my code to.. would appreciate if someone could check it's right

Code:
'*************************************
'LCD code for 16 X 2  HD4x lcd
'*************************************

'Ocsillator selections here
OSCCON = $70            'Int CLK 8MHz
OSCTUNE.6 = 1           'PLL 4x
ADCON1= %00001111       '$0F = disable A/D converter
'END of oscillator selections


'Port IO directions and presets for port pins begin here
TRISA = %00000000       'All pins are outputs
TRISB = %00000000           
TRISC = %00000000           
TRISD = %00000000
TRISE.0 = 0
TRISE.1 = 0
TRISE.2 = 0
'End of Port IO directions and presets for port pins begin here

'timer/oscillator defines 
DEFINE OSC 32            '4x 8MHz
'END of timer/oscillator defines

'LCD defines begin here   
DEFINE LCD_BITS 4 	'defines the number of data interface lines (4 or 8) 
DEFINE LCD_DREG PORTD 	'defines the port where data lines are connected to
DEFINE LCD_DBIT 4 	'defines the position of data lines for 4-bit interface (0 or 4)
DEFINE LCD_RSREG PORTD 	'defines the port where RS line is connected to
DEFINE LCD_RSBIT 2 	'defines the pin where RS line is connected to 
DEFINE LCD_EREG PORTD 	'defines the port where E line is connected to 
DEFINE LCD_EBIT 3 	'defines the pin where E line is connected 
DEFINE LCD_RWREG 0 	'defines the port where R/W line is connected to (set to 0 if not used)
DEFINE LCD_RWBIT 0 	'defines the pin where R/W line is connected to (set to 0 if not used)
DEFINE LCD_COMMANDUS 2000 	'defines the delay after LCDOUT statement 
DEFINE LCD_DATAUS 200 		'delay in micro seconds
'END of LCD DEFINES

LCDINIT LcdCurBlink
   Pause 500       ' Wait for LCD to startup

loop1:   
   Lcdout $fe, 1   ' Clear LCD screen
   Lcdout "Hello"  ' Display Hello
   Pause 500       ' Wait .5 second

   Lcdout $fe, 1   ' Clear LCD screen
   Lcdout "World"
   Pause 500       ' Wait .5 second

   Goto loop1       ' Do it forever