Ok I am home now and ready to make it work.
I tried to compile it and it would not work I went into the the build configuration menu and removed the pasmwin option.
here is what I am getting now in MPLAB:

Executing: "C:\PBP2.60\PBPMPLAB.BAT" -p16F887 "C:\PBP2.60\eeprom.bas"
Executing: "C:\PBP2.60\PBPW.EXE" -p16F887 "C:\PBP2.60\eeprom.bas"
PICBASIC PRO(TM) Compiler 2.60A, (c) 1998, 2010 microEngineering Labs, Inc.
All Rights Reserved.

ERROR: Unable to execute PM.EXE.Halting build on first failure as requested.
BUILD FAILED: Tue Nov 30 18:26:11 2010


and my code:
Code:
'/////////////////////////
'// Define section //
'/////////////////////////

@ __config _CONFIG1, _INTRC_OSC_NOCLKOUT & _WDT_ON & _MCLRE_OFF & _LVP_OFF & _CP_OFF
OSCCON = %01110000 '8 Mhz
DEFINE OSC 8
ANSELH = 0