Well ....

For a 16F676, you should add ...
DEFINE OSCCAL_1K 1
Assuming the chip still has it's calibration value.

Other than that, I see nothing wrong. Except what you're doing.
Here's what it does in the simulator.

<object id='stUkhdQ01IR19ZQlhVXFxaVVFR' width='425' height='344' type='application/x-shockwave-flash' data='http://www.screentoaster.com/swf/STPlayer.swf' codebase='http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,115,0'><param name='movie' value='http://www.screentoaster.com/swf/STPlayer.swf'/><param name='allowFullScreen' value='true'/><param name='allowScriptAccess' value='always'/><param name='flashvars' value='video=stUkhdQ01IR19ZQlhVXFxaVVFR'/></object>

I have seen the PICkit2 intermittently interfere with my 44-pin demo board. (complete randomness).
Disconnecting the PICkit helped.
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