(if it helps, I'm using a PIC16f1828 ...max internal oscillator of 40Mhz)
I don't see how to set this up for 40Mhz. At any rate, what speed are you running?

Do you have a free pin to toggle each interupt to see exactly what the frequency is? While I agree the seeming like 1K is a far cry from 10K, but for me I just like to know for sure to fine tune it.

Also as a suggestion, DT pointed me to TMR2 and the use of the PR register. The advantage is no reloading of the preload. it also has pre and post scaling to turn your 8 bit counter into a slower counter.

Now for more confusion, your preload will give you 32 instructions before overflowing. I think you have that in the int handler itself. not that it will matter, but if you are running at 32 Mhz, 4uSec timing, or 250KHz. So maybe you are flooding HSEROUT?