First I do not see how you are handling MCLRE in the configs or hardware.

Second, take a look at the P18F1220.inc in the MPASM directory. That will show the correct way of setting the configs. They should be in this format
Code:
    @ __CONFIG    _CONFIG1H, _OSC_HS_1H
    @ __CONFIG    _CONFIG2H, _WDT_OFF_2H & _WDTPS_128_2H
    @ __CONFIG    _CONFIG4L, _LVP_OFF_4L