The Crystal is a CM-309S 40 MHz and a scope shows it oscillating correctly at 40 MHz.
The 'CONFIG BITS ON PICKit2 set to 04A1 09DC 09FF 01CF indicates that bits 0-2 of 09DC are set to HS mode and the HSER outputs are indeed 112500 baud.
The timing PAUSE instruction needs 3333 count to create 1 second delay which seems to suggest an instruction clock of 13.3 MHz.
4 MHZ PAUSE instruction delays 1 msec, ie PAUSE 1000 = 1 sec.
I have to use PAUSE 3333 to yield1 sec. thus internal clock seems to be 13.2 MHZ.