Code:
TRISIO = %0000
GPIO = 0

Main:
GPIO.0 = 1
Pause 100
GPIO.0 = 0
Pause 100
Goto Main
Works here, with PBP2.60. I'm assembling with MPASM as I can't use PM on Win7.

Have you selected the correct PIC in the drop-down list in MCS?

/Henrik.