Welcome.

First off, do not
I put 'LIST P=16F506' (no, not the single-quotes too) at the top and it bombs out with that as the first syntax error in BLINK.BAS.
Then it moves on to my next line - INCLUDE "P16F506.INC" (or M16F506.INC) -
PBP will do all of that. All you need to do is select the proper PIC from the dropdown box on the toolbar.

If you want to set the fuses in code space then the *.inc for the chip in the PBP directory needs to have a line or two commented out.
http://www.picbasic.co.uk/forum/showthread.php?t=543

A basic program should look something like this
Code:
 @ __config _HS_OSC & _WDT_OFF & _LVP_OFF & _CP_OFF

   DEFINE OSC 4
   CNT  VAR BYTE
   START:
   FOR CNT = 0 TO 10
   HIGH PORTC.1
   LOW PORTC.0
   PAUSE 250
   LOW PORTC.1
   HIGH PORTC.0
   PAUSE 250
   NEXT CNT
  
   FOR CNT = 0 TO 100
   PORTC = %11
   PAUSE CNT
   PORTC = %00
   PAUSE CNT
   NEXT CNT
   GOTO START