If TRISB = %11111110 and PORTB %00000001 that should mean that bit 0 of PORTB is an ouput all others are input and with PORTB = %00000001 that means bit 1 is equal to one meaning high 5v and all others low, CORRECT???? Well, after check with my meter PORTB 0-7 are high or shall I say 5v,
This is correct! You set portB.0 to be an output all remaining to be inputs, but you also have activated the internal pullup so, all inputs are high waiting your command (short to ground) while your instruction "PORTB %00000001" will have effect only on portB.0.

Al.