If I am not too loopy this morning this is what the configs should look like for the internal OSC.
Read here to see more about setting the configs.
http://www.picbasic.co.uk/forum/showthread.php?t=543
Code:
DEFINE OSC 8
@ __CONFIG    _CONFIG1L, _PLLDIV_5_1L & _CPUDIV_OSC1_PLL2_1L & _USBDIV_2_1L
@ __CONFIG    _CONFIG1H, _FOSC_INTOSCIO_EC_1H
@ __CONFIG    _CONFIG2H, _WDT_ON_2H & _WDTPS_512_2H
@ __CONFIG    _CONFIG3H, _PBADEN_OFF_3H & _MCLRE_OFF_3H
@ __CONFIG    _CONFIG4L, _LVP_OFF_4L & _ICPRT_OFF_4L &_XINST_OFF_4L 
OSCCON = %01110000